No More Forex At CBN Rates, Banks Send Messages To Customers
Fred Omotara, Lagos
Commercial banks in Nigeria have sent out messages to their customers updating them on changes to foreign exchange policy as recently announced by the Central Bank of Nigeria (CBN).
These notifications, sent via email, contain crucial information regarding the determination of exchange rates, emphasizing that the CBN no longer sets the rate.
This is coming a week after a CBN announcement completely changed the forex market in Nigeria after years of capital controls and exchange rate complexities.
In an email to it’s Customers, First City Monument Bank (FCMB) explained that the revised forex policy has impacted access to Form A and Form Q, which are used for making applications.
“Please be informed that the Central Bank of Nigeria (CBN) has recently implemented changes to the operational policies of the foreign exchange market. This is to promote transparency and ensure overall stability.
“In line with this, all forex requests will now be handled with the guidelines below:
“All pending Form A requests for school fees, medicals, PTA, BTA, and other eligible services will be paid in the Investors & Export Window; the bid rate will be determined at the prevailing window rate by willing buyers/sellers at the time of purchase.
“To process pending Form A requests, send an email to Helpdeskits@fcmb.com; indicating your Form A number, the amount required and the rate you are willing to pay.
“For new Form A and Form Q requests, the rate you are willing to buy should be stated in the column for the amount e.g. $4000 at N700
“FCMB accounts must be duly funded with the Naira equivalent of forex request at the prevailing Investors & Export Window rate.
“In addition, domiciliary account holders now have unrestricted access to funds in their accounts; cash deposits not exceeding USD$ 10,000 or its equivalent via telegraphic transfer can be utilised daily.
“Note: The application process for forex has not changed (via TRMS), and the guidelines above will apply to all new and existing Form A and Q requests,” FCMB stated.
Another bank notified its customers that “the Naira to Foreign Currency exchange rate is no longer fixed by the Central Bank” explaining that this means customers can no longer expect to buy forex at fixed rates.
“The rate is determined by the prevailing Foreign Exchange market rate at the point of Foreign Exchange purchase guided by the Investors and Exporters (I&E) window. The above will affect all new and pending Form A and Form Q applications.” another bank stated
A tier one bank also confirmed CBN will no longer determine rates and that it is the I&E Window rates that will be used “All applications will be processed through the Bank; however, the Foreign Exchange (FX) rate will no longer be determined by the CBN.”
“Applicable rates will be determined by the prevailing rate at the Investors & Exporters (I&E) window at the time the request is processed by the Bank.”
The bank also stated that the changes will affect “all new and pending applications” for forex.