Central Bank Of Nigeria Sets Limit On USD Foreign Exchange

Central Bank Governor Godwin Emefiele speaks at the monthly MPC meeting in Abuja, Nigeria, September 22, 2015. Nigeria's central bank kept its benchmark interest rate on hold at 13 percent on Tuesday but loosened monetary policy by cutting banks' cash reserve ratio to 25 percent to ease liquidity shortages, governor Godwin Emefiele said. The vote to cut the cash reserve requirement from 31 percent was by 7 to 3 votes of the monetary policy committee, he said, adding that the committee had voted unanimously to keep the main rate unchanged. REUTERS/Afolabi Sotunde

The central bank of Nigeria has become extremely heavy handed with foreign exchange policies. Initially restricting liquidity of USD and other currencies. Furthermore remittance providers were also forced to comply with tighter regulations as discussed before. The combinative effect of this was an ultimate fall on foreign exchange as it not only became expensive but much more time consuming. The central bank has set a new limit of $30 000.00 for the total of foreign exchange sales from authorised remittance agencies.Central-Bank-of-Nigeria-The-Trent-2-700x525

The price of the Naira has fallen into free fall over this year. Not gaining much ground particularly to the Dollar, the currency has prompted recession and unemployment fears. Hitting values near to 400/USD on the black market and even dropping to rates of 375 on parallel markets, the Naira has had a hard time on international markets as people cash out.

“ Authorised Dealers shall sell foreign exchange cash to BDCs subject to a maximum of $30,000.00 per week. A BDC shall nominate its preferred Authorised Dealer (DMB) and can only procure the said amount from only that bank of its choice in a week. Any breach of this condition will attract appropriate sanction.”

The new limit was set essentially to steam the rate of selling as the Naira is considerably weakened by demand for the dollar. Set to protect the Naira’s value, the limit has an adverse affect for civilians looking to accept remittances made in dollars. This has prompted a huge increase in international Bitcoin transactions.

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To conclude the new limit will restrict remittance options much more as Dollars become harder to remit. An alternative, Bitcoin has been renowned for its ability to transmit money international within a matter of seconds. Using the NairaEX exchange you can easily sell your Bitcoin for the best rate on the market.

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Hi I'm Aleppo Allesadero a experienced bitcoin user and educator. Having worked for over a year in the bitcoin journalism ive seen bitcoin grow from strength to strength asserting its power against fiat currency. Hopefully you too can learn about this exciting new prospect which may help transform the way we see finance and economy on a daily basis.