CBN Governor Gives Condition To Allocate Forex For Demands That Exceed Approved Limits

The Governor of the Central Bank of Nigeria (CBN), Mr Godwin Emefiele has said that the apex bank will consider approving foreign exchange for customers with legitimate demand that exceeds transaction limit as long as such applications meet stipulated requirements.

This is as the apex bank had insisted that it would no longer allocate dollars to Bureau De Change (BDC) operators who then sell to criminals and terrorists who buy weapons that are used to hurt Nigerians.

Emefiele was giving the assurance following various complaints by various customers that the $5,000 transaction limit as stipulated in the current forex policy is inadequate and may not meet their actual needs, according to ThisDay.

This was made known by the CBN Governor, during a chat with newsmen over the weekend, where he said that the apex bank was ready to approve requests from commercial banks to go beyond the caps if it is proven that the extra demand for forex is for legitimate purposes.

What the CBN Governor is saying
Emefiele said, “Indeed, I want to put it on record; if the amount you want is even above the limit that is recognised and we find that the reason you are making those demands is legitimate, your bank will speak to us and we will give you more than what is even the limit.”

He further insisted that the Central Bank recognizes the Investors and Exporters (I&E) Window as the major market which anyone seeking to procure or sell foreign exchange should patronise and encouraged customers to go to their banks for their FX needs.

CBN Governor added, “The only exchange rate that I recognise today in the Nigerian foreign exchange market which is the dominant market remains the Investors and Exporters (I&E) window.”

“I am sorry to say that I do not and I do not intend to recognise that there are any other rates in the market.’’

What you should know
Recall that the CBN in July 2021, announced the stoppage of dollar allocation to BDC operators, explaining that they have become a conduit for illegal financial flows working with corrupt people to conduct money laundering in Nigeria.
Also, the CBN had moved against AbokiFX, a website that provides currency exchange information, saying it will shut down its operations over its posting of exchange rates.
Emefiele had said that the CBN is determined to put an end to the activities of illegal Forex traders adding that the apex bank remains the only national bank in the world that sells dollars to BDCs from the country’s reserves.