DON'T BORROW MONEY FROM US TO PAY FOR FOREX OR AUCTIONS, THE CBN WARNS BANKS AND OTHERS.

The Central Bank of Nigeria (CBN) has issued a warning to commercial banks and authorized sellers not to exploit its low-cost home windows, Treasury Payments, and Open Market Operations auctions in order to finance international trade.

In a circular published by the CBN Director of the Monetary Market Division, Angela Sere-Ejembi, this was made known to authorized dealers. The notice on admission to the CBN low-cost windows said that some authorized dealers hadn't been abiding by the rules based on its circulars dated August 1, 2012 and August 8, 2016 that were referred as FMD/DIR/GEN GIR/03/006 and FMD/DIR/GEN/CIR/07/005, respectively.

The Standing Automated Repo Conversion (AREPO), Funding for Liquidity Facility (FfLF), and Tenored Repurchase Transactions are all included in the CBN low-cost window (REPO).

For Open Market, successful bids on the Open Market Operations (OMO) auctions are to refrain from accessing the low-cost window on the public sale date, according to the most recent round released over the weekend. Failure to comply will result in the cancellation of allocation.

The CBN stated that the time was right for the banks to source their foreign exchange by providing entrepreneurs with ideas, skills, to make them responsive and draw FX to Nigeria when it announced the launch of what it named The RT200 Programme.

CBN Governor Godwin Emefiele said this during the Bankers' Committee press conference on Thursday.

The experts emphasized that there is no short cut to attracting foreign direct investment, recalling earlier advice they gave to the government that halting forex payments to bureau de change operators alone will not save the naira and that a comprehensive approach, including holding banks accountable, is necessary to find a solution.

Emefiele responded that banks would assist the program when asked about their roles in the new policy and the CBN will put an end to the dollar sales era by this year.

According to him, banks should obtain export revenues from exporters to provide their clients with (importers).

According to experts, the new CBN strategy, if successfully implemented, would lessen pressure on the naira, improve exports, draw foreign investment to the nation, and open up job prospects for the populace.

The new policy, according to him, will be supported by five major pillars: a value-added export facility; an expansion facility for non-oil commodities; a non-oil FX rebate program; specialized non-oil export ports; and a biannual non-oil export summit.

In addition, it stated that sellers with successful bids on the government securities auctions (e.g., Nigerian Treasury Bonds (NTBs), Federal Government of Nigeria (FGN) Bonds, and Sukuk) should not be authorized to join the CBN low-cost window on the settlement date. On the date of SLF, FfLF, and REPO will not be accepted. AREPO and conversion of Intraday Liquidity Facility (IDF) to FfLF on the settlement date, in addition to functioning REPO shall lure a penal cost of 5 per cent (5.00%) flat on the allotment value.

On the dates of each public sale and transaction, individuals with profitable overseas trade bids and transactions are not to enter the low-cost window. Failure to comply will result in the cancellation.

This Round strikes with immediate force. Accordingly, all authorized vendors will comply.