The Central Bank of Nigeria, CBN, has vowed to penalize authorized dealers in foreign exchange, FOEX, dealers that fail to comply with its new directive on foreign exchange transactions. A circular by Alvan Ikoku, director, Financial Markets Department of the apex bank, to all authorized dealers, directed the dealers to “open teller points in all locations in order to ensure access to foreign exchange by their customers without any hindrance.”
The dealers are also expected to install electronic display boards in all their branches that will show rates of all traded currencies; process and meet the Personal Travel Allowance/Basic Travel Allowance, PTA/BTA, demands of customers within 24 hours of such applications and to process and meet demands for school fees (including allowances) and medical bills within 48 hours of such applications. The objective of the directive is to further increase foreign exchange liquidity in the market and ensure availability to end users.
Ikoku was empathic that “non-compliance with these directives would attract sanctions, including but not limited to being barred from all future CBN foreign exchange interventions.”
The CBN has for the past one week carried out several interventions in the foreign exchange market to curb the value of the Naira from getting out of control. These measures have seen the Naira appreciate throughout last week with the possibility of the nation’s currency further appreciating in the near future.