The Central Bank of Nigeria (CBN) opens special FX window for Small and Medium Enterprises (SMEs)
The Central Bank of Nigeria (CBN) announced Monday night that it has opened a special Forex window for Small and Medium Enterprises (SMEs).
The CBN said this is to enable them import eligible finished and semi-finished items which must not exceed $20,000 for an enterprise per quarter.
The CBN spokesman, Isaac Okorafor who disclosed this in a statement in which he explained that the Bank’s special intervention was necessitated by its findings that a large number of SMEs were being crowded out of the forex space by large firms.
“The sum of $20,000 per SME customer per quarter can be effected by telegraphic transfer subject to completion of Form ‘M’ supported with proforma Invoice and the importer’s Bank Verification Number (BVN),” Okorafor noted.
According to him, all processing banks are to ensure that the importers submit relevant shipping documents not later than 60 days from the date of the transfer.
CBN defines Small and Medium Scale Enterprises are enterprises that have asset base (excluding land) of between N5 million and N500 million and a labour force of between 11 and 300.
Meanwhile, the CBN has commenced massive sale of foreign exchange in different sectors of the Forex market this week.
On Monday, the CBN offering the sum of $100 million to authorized dealers at the forex auction in the interbank wholesale window. The Bank also sold $10,000 each to BDCs to meet the needs of low-end users in the country.
The spokesman said that the dealers in the wholesale segment will have value for their respective bids on Tuesday.
According to Okorafor, out of the $100 million offered, $99,544,417.45 was picked up by dealers during the last wholesale auction on April 6, 2017.
Meanwhile, operators in the Bureau De Change (BDC) segment have duly funded their accounts with the CBN in anticipation of accessing the dollar equivalent ($10,000) on Tuesday, April 11, 2017.
There are strong indications that the CBN would continue its special intervention in the market with the sale of more dollars to BDCs and in both the retail and wholesale windows in the course of the week.