CBN warns speculators, resumes forex sale to SMEs

The Central Bank of Nigeria on Wednesday intensified its surveillance of the foreign exchange market, warning speculators, smugglers and other illegal users.

The CBN in the statement vowed to take decisive actions against any individuals or institutions involved in such speculation, smuggling and illegal use of foreign exchange in the country.

The apex bank said the warning became imperative following its resumption of dollar sales to the small and medium enterprises and payment of school fees.

It said with its decision to release over $100m per week for both categories, there might be a spike in forex demand by speculators.

The CBN said in view of the gradual easing of the COVID-19 lockdown both globally and in Nigeria, foreign exchange would be provided to all commercial banks for onward sale to parents wishing to pay their schools fees.

It also said the SMEs wishing to make essential imports needed to revamp economic activities across the country would also benefit from the dollar sale.

The statement read in part, “The CBN is resuming the provision of over $100m per week for both categories (the SMEs and school fees).

“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.”