CBN promises to boost forex supply, assure travellers of access to dollars

The Central Bank of Nigeria (CBN) in a recent statement said it had concluded plans to give banks access to more foreign exchange allocation.

Governor of the bank, Mr Godwin Emefiele said there would be an increase in forex supply and that Nigerians travelling abroad would now be able to get up to $4000 foreign exchange from banks. Those travelling on business trips would be able to access up to $5000 for each trip.

The CBN boss appealed to banks to desist from denying customers access to purchase foreign exchange. According to him, the motive behind this is to ensure the availability of forex for the upcoming summer period and students returning to school.

Emefiele said forex must be made available at all times to anyone who wants to buy Basic Travel Allowance (BTA), Personal Travel Allowance (PTA), School Fees as well as for Small and Medium Enterprises.

He said the weekly allocations for Bureau De Change will not be affected, but that what the central bank was doing is to encourage all banks to make sure that there is available forex at all times.

In a recent development, the International Monetary Fund (IMF) has cautioned the government of Nigeria to reduce borrowing from the CBN and keep it within legal limits.

The IMF gave the caution in a statement issued at the end of a virtual meeting it had with Nigerian authorities. The meeting which was led by Ms Jesmin Rahman urged the authorities to keep reliance on CBN overdrafts for deficit financing within legal limits.

The government was advised to moderate its borrowing from the CBN as well as strengthen budget planning and public finance management practices to allow for flexible financing from domestic markets and better integration of cash and debt management.