• Amid Fears of Depreciation of the Naira

The Central Bank of Nigeria (CBN) says it has resumed dollar sales to small and medium enterprises (SME) as well as to parents who need to make foreign exchange remittance towards their children’s school fees commitments.

The apex bank also disclosed that it had concluded arrangements to resume dollar sales to Bureau De Change (BDC) operators when normalcy returns to the economy following the COVID-19 pandemic.

The CBN disclosed these developments in a circular signed by its Director, Corporate Communications, Isaac Okoroafor, and obtained by NEXTMONEY.

The circular noted that the development followed the gradual easing of the COVID-19         lockdown both globally and in Nigeria.

“In view of the gradual easing of the COVID-19 lockdown both globally and in Nigeria, the Central Bank of Nigeria (CBN) has resumed provision of foreign exchange to all commercial banks for onward sales to parents wishing to pay schools fees and SMEs wishing to make essential imports needed to revamp economic activities across the country.

“In particular, the CBN is resuming the provision of over US$100 million per week for both categories.

“The CBN has also made complete arrangements to resume foreign exchange sales to the BDC segment of the market for business travels, personal travels, and other designated retail uses, as soon as international flights resume.

“With these actions, the CBN wishes to reiterate that it is adequately meeting the needs of all legitimate users, and our continued capacity to do so should not be in doubt.

“There is therefore no need for panic by any end-user that could necessitate recourse to illegitimate sources and spike in foreign exchange rates.

“Given this, the Bank has ramped up its surveillance of the foreign exchange markets for speculators, smugglers and other illegal users, and will take decisive actions against anyone/institutions involved in such nefarious activities,” the bank said.

The measure comes on the heels of rapid depreciation of the local currency, the Naira, which has come under pressure in recent weeks.

It could be recalled that the CBN had in a note issued to Bureau De Change operators (BDCs) in the country, suspended the sales of foreign currency  to them for two weeks effective March 27, 2020.

The suspension was sequel to a request  by the Association of Bureau De Change Operators of Nigeria (ABCON) for the CBN to grant them a two-week holiday as a measure to control the spread of the Coronavirus outbreak which was  rapidly spreading  in the country.

Notwithstanding the recent policy reversal, there are palpable fears that the Naira would continue to witness rapid fall against the dollar in the days ahead.

This follows pressure on the local currency as Nigeria witnesses rapid dwindling foreign exchange revenue  triggered by sharp decline in the demand and prices of oil in the international market.