CBN to create special dollar reserve for manufacturers, airliners, fuel importers

CBN to create special dollar reserve for manufacturers, airliners, fuel importers

The Central Bank of Nigeria (CBN) says it will offer dollar equivalent to address the backlog of matured foreign exchange obligations to critical sectors, mainly manufacturers, airline operators, fuel importers and those in agriculture businesses.

According to the apex bank :”Authorised dealers’ accounts with the CBN will be debited in full for the naira equivalent of the dollar bid amount on a spot basis,” the bank said in a notice to stakeholders.

The bank said it would settle all the cumulative bids, which had been in arrears of two months, but it did not state exactly the total amount of dollars that this could take.

Read also: Naira slide rattles CBN, as it pumps in more dollars into forex market

It would be recalled that the apex bank had on Monday offered $150 million wholesale forwards to banks, adding that it would also release $90 million for invisible transactions to ensure liquidity in the forex market.

But it has been observed that despite the bank’s constant selling of dollars on the official market in an attempt to narrow the spread with the black market exchange, the local currency is said to have dropped from N390 per dollar to N395 a dollar at the black market on Monday and Tuesday.

Observers believe that paying attention to critical sectors of the economy may help in sustaining stability in the forex.

 

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