Nigeria's central bank to supply FX to retail clients at 20 pct above interbank rate

Nigeria’s central bank said on Monday it would supply dollars immediately to retail clients through commercial lenders who will resell them at a margin of not more than 20 percent above the interbank rate of 305 naira per dollar.

The central bank plans to boost dollar sales for school fee payments and travel abroad as part of efforts to reduce a 40 percent premium paid for dollar on the black market, where retail customers buy their hard currency.

The bank said it would activate the market’s order-book as soon as possible and accelerate currency matching of the trading platform to ensure transparency.

“Given our plan to meet all unfilled orders, and while provision of FX to the manufacturing sector would remain the central bank’s strong priority, we will no longer impose allocation/utilization rules on commercial banks,” the bank said in a statement.


(Reporting by Camillus Eboh; Writing by Chijioke Ohuocha; editing by John Stonestreet)

Partner Content

Disruptive digital solutions is rewiring the DNA of Banking

By Kennedy Mubita, Africa Head, SC Ventures. Imagine a bank whose customers can tap on a wearable device to...

The future of banking; digitization and collaboration as growth accelerants

By Kariuki Ngari, CEO & Managing Director, Standard Chartered, Kenya & East Africa COVID-19 has upended the social and...

Star Quality Speaker Line-Up at Africa Tech Festival 2020

Acknowledged as the world’s largest Africa-focused digital infrastructure and emerging tech event, the Africa Tech Festival has always attracted a stellar line-up of critical thinkers, analysts, futurists, keynote and inspirational speakers. 2020 will more than deliver on that reputation, with a stimulating array of visionary industry presenters, raconteurs and even some sporting greats.


Sign up for free newsletters and get more CNBC AFRICA delivered to your inbox