Nigeria’s central bank has announced it is stopping the direct sale of US dollars to bureaux de change to protect the West African nation’s naira currency, and conserve depleted foreign reserves.
“Operators in this segment of the market would now need to source their foreign exchange from [an] autonomous source,” Bank chief Godwin Emefiele said in a speech in the capital, Abuja, AFP news agency reports.
“Commercial banks will now be allowed to accept cash deposits of foreign exchange from their customers,” he added.
Oil sales contributed some 90% of Nigeria’s foreign exchange earnings. But as the cost of a barrel plunged below $40 (£27) a barrel this month, forex earnings have fallen to as low as $1bn a month, said Mr Emefiele, AFP reports.
At the same time, forex demand in Nigeria’s import-heavy economy has risen, which, combined with rising inflation and slowing growth, has led to the depletion of foreign reserves, he added.
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