In its bid to finding lasting solution to the dwindling fortune of the naira, the Central Bank of Nigeria CBN) has revisited its foreign exchange market policy with special attention now to be paid to startups and small and medium-sized enterprises (SMEs)
To that effect, its policy on travel allowances and medical and tuition fees will now be reduced to have enough support for upcoming businesses.
The apex bank said on Monday that it would release only $41 million periodically for medical and other personal foreign trips from $50 million (20 per cent) that was being given out previously, as the balance will be used to support its small enterprises-support policy.
To this the CBN will, on quarterly basis, ensure that a minimum of $20,000 be made available to, at least, some qualified small entrepreneurs to prop up their businesses.
This will essentially reduce the number of the SMEs that patronise the parallel market with its high exchange rate, as compared with the interbank’s rate.
The apex bank stated that, “there is the urgent need to increase the effort aimed at propping up small business enterprises whose access to foreign currencies has been overshadowed by larger companies.”
There is also a concluded plan to sell shorter-dated dollar towards injecting liquidity into the official market and aimed ultimately to support the naira.
The bank is to follow this up by auctioning $100 million to forex operators weekly, and even with credit facilities extended to them for a period of about 30 days.
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