*The Central Bank of Nigeria says it plans to end sales of foreign exchange to banks by the end of this year as part of the Bank’s commitment to boosting the country’s foreign reserves through proceeds from non-oil exports

Gbenga Kayode | ConsumerConnect

In line with the Bank’s new commitment to boosting the West African country’s foreign reserves through proceeds from non-oil exports, the Central Bank of Nigeria (CBN) has disclosed it plans to end sales of foreign exchange (Forex) to banks by the end of this year.

ConsumerConnect reports Mr. Godwin Emefiele, Governor of CBN, who hinted at this development Thursday, February 10, 2022, in Abuja, FCT, said the Deposit Money Banks (DMBs) must begin to source their Forex from export proceeds.

Emefiele made the comments at a media briefing during the launch of the bank’s RT200 FX, a new Forex repatriation scheme, after the Bankers’ Committee meeting Thursday.

He stated: “The era is coming to an end when, because your customers need 100million Dollars in foreign exchange or 200 million Dollars, you now want to pack all the dollars and pass it to CBN to give you Dollars.

“It is coming to an end before or by the end of this year. We will tell them don’t come to the Central Bank for foreign exchange again go and generate your export proceeds.”

Emefiele also said: “When those export proceeds come, we will fund them at 5% for you and they will earn rebait. Then you can sell those proceeds to your customers that want 100 million dollars.

“But to say you will continue to come to the Central Bank to give you dollars, we will stop it.”

The decision, the CBN Chief said, is in line with the Bankers’ Bank’s new commitment to boosting Nigeria’s foreign reserves through proceeds from non-oil exports.

Emefiele added: “Nigeria cannot continue to depend on FX earnings to fund its import obligations from revenue coming from earnings from products where we cannot determine both price and quantity.”