Deposit Money Banks (DMB) are set to witness a boost in foreign exchange (Forex) supply as the Central Bank of Nigeria (CBN) will, beginning today, significantly increase the volume of its dollar supply to authorised banks.
The apex bank said it was hopeful that the move will boost foreign exchange supply in the system and also pointed out that only those involved in illicit transactions patronise black market operators and pay outrageous rates.
THISDAY quoted senior central bank officials in a report, to have said that the growing illiquidity in the black market, where the US dollar traded N535, would continue as the apex bank sought to drive Nigerians to official sources, where the rate was about N411 to the dollar.
The officials said the black market rate could not be a reference rate as it implemented a multi-pronged approach to stop the dollarisation of the economy for domestic transactions.
The apex bank, according to the report, had recently met with government ministries, agencies and departments to stop collecting payment in foreign currencies, targeting particularly, airlines and the Nigerian Port Authority (NPA).
The officials also made clear that those who collect rent in dollars would be prosecuted, reiterating that if anyone needed dollars for foreign transactions, they should simply go to their banks.
In a related development, the CBN, has reassured Nigerians that its upcoming digital currency, commonly referred to as e-Naira, would not disrupt the existing structure of the banking system but would rather enhance financial stability.
Deputy Governor, Operations Directorate, CBN, Folashodun Adebisi Shonubi, said this at the Chartered Institute of Bankers’ of Nigeria (CIBN) Advocacy Dialogue Series Four, where stakeholders converged virtually to discuss, “Central Bank Digital Currencies (CBDC): Insights for the 21st Century Banker.”
