CBN Increases Forex Allocation To Banks

The Central Bank of Nigeria has concluded plans to increase the
amount of foreign exchange allocated to banks to meet the requests
of customers, particularly travelers, seeking the forex for travel
allowances, payment of tuition and medical fees, among other
invisibles.

This followed a warning issued by CBN Governor Godwin Emefiele
at a meeting with the Managing Directors of Deposit Money Banks
(DMBs) asking them to desist from denying customers, particularly
travelers, the opportunity to purchase foreign exchange.

Emefiele warned that the CBN would severely deal with any bank
that denied customers the opportunity to purchase foreign exchange
for legitimate purposes.

Sources privy to the meeting said that the CBN management
frowned at the difficulties customers experienced in accessing
foreign exchange through their respective DMBs, particularly for
invisibles such as PTA and requests bordering on tuition and
healthcare needs.

Furthermore, the sources hinted that the CBN might release
several hotlines for aggrieved customers to report any bank that
fails to sell foreign exchange to them even when they have provided
required documentations.

Confirming the discussions at the meeting, the Acting Director,
Corporate Communications Department at the CBN, Osita Nwanisobi,
yesterday said that the CBN remained committed to ensuring
liquidity in the foreign exchange market to meet genuine and
legitimate demands of customers.

He said: “The CBN agreed to increase the amount allocated to
banks for travelers, Small and Medium Enterprises among others.

“The banks also agreed to operate something akin to foreign
exchange imprest account such that the coffers of banks will be
replenished so long as they retire the initial amounts to the
satisfaction of the CBN”.

The Central Bank of Nigeria has concluded plans to increase the
amount of foreign exchange allocated to banks to meet the requests
of customers, particularly travelers, seeking the forex for travel
allowances, payment of tuition and medical fees, among other
invisibles.

This followed a warning issued by CBN Governor Godwin Emefiele
at a meeting with the Managing Directors of Deposit Money Banks
(DMBs) asking them to desist from denying customers, particularly
travelers, the opportunity to purchase foreign exchange.

Emefiele warned that the CBN would severely deal with any bank
that denied customers the opportunity to purchase foreign exchange
for legitimate purposes.

Sources privy to the meeting said that the CBN management
frowned at the difficulties customers experienced in accessing
foreign exchange through their respective DMBs, particularly for
invisibles such as PTA and requests bordering on tuition and
healthcare needs.

Furthermore, the sources hinted that the CBN might release
several hotlines for aggrieved customers to report any bank that
fails to sell foreign exchange to them even when they have provided
required documentations.

Confirming the discussions at the meeting, the Acting Director,
Corporate Communications Department at the CBN, Osita Nwanisobi,
yesterday said that the CBN remained committed to ensuring
liquidity in the foreign exchange market to meet genuine and
legitimate demands of customers.

He said: “The CBN agreed to increase the amount allocated to
banks for travelers, Small and Medium Enterprises among others.

“The banks also agreed to operate something akin to foreign
exchange imprest account such that the coffers of banks will be
replenished so long as they retire the initial amounts to the
satisfaction of the CBN”.