Economy

CBN Bars Commission On Retail Fx Sales, Intervenes With $210m

As agreed during last week’s meeting of the Bankers’ Committee, the Central Bank of Nigeria (CBN), on Monday announced abolition of commissions on retail foreign exchange transactions such as Business Travel Allowance (BTA), Personal Travel Allowance (PTA), Medical and School fees by deposit money banks in the country.
The decision was reached at a meeting of the Bankers’ Committee comprising executives of the CBN, Nigeria Deposit Insurance Corporation (NDIC) and chief executives of banks, among others.
The decision, which is with immediate effect, was formally announced by W.D. Gotring, Director, Trade and Exchange Department of the apex bank in a circular.
Meanwhile, the CBN also on Monday announced a further $210m intervention in the inter-bank foreign exchange market to meet customers’ requests in various segments of the market.
A statement by apex bank said it offered $100m to authorized dealers in the wholesale segment of the market, while the Small and Medium Enterprises (SMEs) segment got the sum of $55m.
The figures also indicated that customers needing foreign exchange for invisibles such as tuition fees, medical payments and Basic Travel Allowance (BTA), among others, were also allocated the sum of $55m.
The statement quoted CBN’s Acting Director, Corporate Communications Department (CCD), Isaac Okorafor, as assuring Nigerians that it will continue to intervene in the interbank foreign exchange market, in line with its pledge to sustain liquidity in the market and maintain stability.
Okorafor added that the CBN will not renege on its promise to manage the forex with a view to reducing the country’s import bills and halting depletion of its foreign reserves.
Monday’s intervention followed a similar one just last Friday, February 9, 2018, in the Retail Secondary Market Intervention Sales (SMIS) to the tune of $325.64m to cater for requests in the airlines, agricultural, petroleum products and raw materials and machinery sectors.
Meanwhile, the naira continued its stability in the FOREX market, exchanging at an average of N361/$1 in the BDC segment of the market on Monday, February 12, 2018.

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