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CBN allays fears of dollar scarcity

By on December 9, 2015

The Central Bank of Nigeria (CBN) on Monday maintained that it has enough dollar cash to meet demand by  operators of Bureau De Change (BDCs) who sell to retail end-users for eligible transactions.

Director, Communications, CBN, Mr. Ibrahim Muazu, who said this in a telephone chat with THISDAY on Monday, said the naira remains stable.

While the naira closed at N197/$1 at the official market, was sold at N246/$1 at some parallel market points at Marina, Lagos in the evening.

But responding to a question on insinuation that there was scarcity of the greenback at the BDC segment of the market,Muazu explained that only operators that render appropriate returns would be allowed to buy forex from the central bank’s auction.

The CBN last week suspended about 1,600 BDC operators from participating in its forex auction. The regulator’s hammer fell on the currency dealers over their failure to render appropriate returns on the sale of the greenback. The CBN recently warned banks and the forex dealers to ensure they render effective returns on dollars purchased from its official window or they would be punished. Most of those affected were firms that allegedly gave false bank verification numbers of those they said purchased forex from them.

However, Muazu said: “Some of them were not able to buy from the CBN because they did not rendered appropriate returns. If they comply, by giving us appropriate BVNs of those they sold dollars to for proper verification, then they would be sold to. Only those that render appropriate returns would be attended to.

“All genuine demands are met and the market has been stable since last month,” he added.

A BDC operator, who spoke to THISDAY on condition ofannonymity however said BDCs that were fortunate to purchase the greenback have been hoarding it, thereby creating room for scarcity in the market.

A CBN circular dated November 25, 2015, had stated: “It has been observed that a number of the BDCs purchased foreign exchange from the CBN without rendering returns on theirutilisation. Consequently, all BDCs must comply with the following pre-conditions before accessing forex from the CBN window: Rendition of returns on previous week purchases through e-FASS; and physical submission of returns on utilisation.

“In addition, all BDCs that purchased forex on November 25 without submitting their returns for the previous week ending November 20 should return the total amount purchased for the week to the bank not later than November 26, 2015, failing which appropriate sanction will be imposed.”

 

[ThisDay]