The Central Bank of Nigeria (CBN), Thursday said it will stop selling forex to Deposit Money Banks by the end of 2022.
Making this disclosure after a Bankers’ Committee meeting, CBN governor Godwin Emefiele said it was time for banks to source for forex by funding entrepreneurs with ideas.
Mr Emefiele disclosed that the apex bank will provide banks with rebates and other support needed for them to be able to independently source for forex without the CBN.
He detailed that policies and measures introduced under his leadership of the apex bank have resulted in an improved diaspora inflow to an average of over US$100 million per week by January 2022 from a $6 million per week inflow in December 2020.
He further disclosed that the apex bank would henceforth review its intervention programmes to ensure that they continue to achieve the desired results.
This development comes months after the apex bank blocked foreign exchange transactions with bureau de change operators.
The bank also suspended the issuance of new licences to money changers across the country.
Bureau de change operators have long been a major black market, providing exchange rate support to those unable to formally access foreign currencies directly from the CBN. The suspension of their ability to source foreign exchange from the CBN has placed a significant impact on the country’s economy and brought the naira under further pressure.
The Buhari regime has faced criticisms for mismanaging the country’s economy after the naira tumbled by wide margin against the United States dollar and other major international currencies. A dollar was about 180 to naira when the administration assumed power in 2015, but it now exchanges for about 411.50 to naira, and about 510 to naira at parallel markets.