THE Central Bank of Nigeria (CBN) has pegged the exchange rate of the Naira at N360 per Dollar for specific purposes, in apparent bid to strengthen the Naira vis-à-vis other foreign currencies.
Consequently, it has directed all banks to immediately begin the sale of dollar for Basic Travel Allowance (BTA), PTA, Tuition and medical fees to customers at not more than N360 per dollar.
A statement by the CBN Acting Director, Corporate Communications, Isaac Okorafor explained that the apex bank would sell to banks at N357 naira per dollar.
He said: “Banks are to post the new rates in the banking halls of their branches immediately. CBN will send examiners to banks to ensure the new rates are implemented. Banks are prohibited from selling FX funds meant for invisibles to Bureau De Changes (BDCs).”
On Friday, March 24, the CBN concluded transactions on the sum of $100 million earlier offered at the interbank market to meet customers’ demands.
However, at the wholesale auction, authorized dealers were only able to buy $81.347 million after an initial bid for $91 million.
Okorafor attributed the inability of authorised dealers to pick up the entire offer of the CBN to increasing dollar supply and sense of apprehension among dealers who anticipate a further crash in the rate of the dollar.
Okorafor further assured the determination of the Bank to sustain its current interventions in the market.
According to him, “those who doubt the capacity of the Bank to sustain the intervention in the FOREX market are beginning to have a change of mind”.