Banks shop for buyers as CBN floods market with Forex
The new strategy of the Central Bank of Nigeria to meet all legal demand for foreign exchange has led Money Deposit Banks to contend with expending all the dollars in their possession. A check in Abuja showed that the banks had cleared all backlog of demands for foreign currencies for basic travel allowance, school fees and medicals. A source in the United Bank for Africa said that UBA had so much dollars that the bank’s marketers had been asked to encourage customers to request for foreign currencies. The source said that the bank wanted to avoid a situation where it was forced to return excess Forex to the CBN. It explained that doing so would force the CBN to reduce the quantity of Forex it sold to banks. Another source from First Bank said following the CBN intervention, the bank had succeeded in clearing all pending requests for Forex as far back as September 2016. Also, a source in Guaranty Trust Bank commended the decision of the CBN to...