Deposit Money Banks are grappling with a shortage of US dollars following a reduction in foreign exchange allocations by the Central Bank of Nigeria.
Bank officials have reported their inability to meet customer demands for forex, particularly for purposes such as school fees and Personal Travel Allowance.
The disparity between supply and demand has worsened, leading top banking officials to express hopes for increased intervention from the central bank to alleviate the shortage.
Several bank sources have confirmed that the Central Bank of Nigeria has significantly scaled back their foreign exchange allocations.
The central bank has announced plans to implement measures to stabilize the value of the naira, which had been experiencing a decline.
While the naira saw some improvement in the parallel market after the central bank’s intervention, Bureau de Change Operators remain cautious, awaiting further action.
Notably, the Acting Governor of the Central Bank of Nigeria, Folashodun Shonubi, mentioned that the fluctuations in the parallel market are influenced not only by economic factors but also by speculative demand.
Some Bureau de Change Operators reported a decline in the naira’s value against the dollar, despite the central bank’s assurances of increased dollar supply.
In another development, the Federal Government is considering taking action against Bureau De Change operators in an effort to address the pressure on the local currency.
Sources suggest that the government is concerned about the speculative practices of currency speculators, which have contributed to the current forex challenges.
The Economic and Financial Crimes Commission might be involved in addressing this issue, although specific details and verification remain pending.
