As from Monday next week, banks in Nigeria will receive an additional $20 million every week from the Central Bank of Nigeria (CBN) to cushion the effect of Dollar scarcity in the country.
According to a report by Business Day, the extra $20 million will be shared equally among the 20 banks in Nigeria. They would be expected to take the weekly additional Dollar allocation to sell to their customers in need of the foreign currency to pay medical fees, school fees and others.
The acute shortage of Dollar in Nigeria has forced the local currency, the Naira, to weaken at the foreign exchange market. As at the close of trading activities at the forex market on Friday, the Naira was exchanged for N516 to the Dollar at the parallel segment of the market.
According to Business Day, the decision to allocate $20 million weekly to the banks was reached on Friday at the bankers committee meeting. It was reported that the allocation will also cover some other invisibles.
It is hoped that this move will help cushion the pressure on the Naira. There have been speculations that the Naira may go for N1000 to the Dollar before the end of 2017, a development many Nigerians will not want to happen.