Business
CBN to end sale of FOREX to banks
CBN to end sale of FOREX to banks.
The CBN will stop the sale of foreign exchange to commercial banks before the end of the year, its governor, Mr Godwin Emefiele, said in Abuja on Friday.
He said the banks would have to start sourcing their FOREX from export proceeds by massively supporting the non-oil sector of the economy.
Addressing newsmen as fallout of the 364th Bankers’ Committee Meeting, Emefiele said the decision was in line with CBN’s commitment to boost the country’s foreign reserves through proceeds from non-oil exports.
“The era is coming to an end when, because your customers need 100 million dollars in foreign exchange or 200 million dollars, you pass it to the CBN to give you dollars.
“It is coming to an end before or by the end of this year. We will tell them not to come to the CBN for foreign exchange again; they should go and generate their export proceeds.
“When those export proceeds come, we will fund them at 5 per cent for them and they will earn rebate.
“Then they can sell the proceeds to their customers that want 100 million dollars. But to say they will continue to come to the CBN to give them dollars, we will stop it,’’ he said.
Emefiele added that Nigeria could not continue to depend on FOREX earnings to fund import obligations of products whose prices and quantities were beyond the control of the CBN.
The National Daily reports that the CBN had earlier introduced a new FOREX intervention programme – “Race to $200 billion’’ (RT200) – to help to boost non-oil exports and FOREX earnings.
Emefiele said RT200 aimed at generating 200 million dollars exclusively from non-oil exports over the next three years to five years.
He said that the CBN would provide concessionary, long-term loans for business people interested in expanding existing plants or building new ones for the purpose of adding value to non-oil commodities before exporting same.
“These loans will have a tenure of 10 years, with a two-year moratorium and an interest rate of 5 per cent,’’ Emefiele said.
-
Comments and Issues2 days agoCan President Tinubu Revive Nigeria’s Moribund Refineries?
-
Business3 days agoTinubu knocks Atiku’s subsidy plan, says proposal shows ‘ignorance’ of economy
-
Entertainment5 days agoPoco Lee faces rape allegation as unverified UK arrest report spreads online
-
Latest6 days agoTinubu files: US Judge grants four-day extension in FOIA disclosure battle
-
Featured6 days agoBeyond Osun 2026: What Adeleke’s re-election reveals about Nigeria’s road to 2027
-
Business6 days agoStandard Bank eyes stake in OPay ahead of planned $4bn US IPO
-
Featured3 days agoEconomic Reality vs Party Machinery: What will drive Nigeria’s 2027 election?
-
Business2 days agoTikTok, ByteDance agree to $400m settlement in US children’s privacy case