Information Naija: 10/01/13

CBN bans importation of foreign currency

Abuja - The Central Bank of Nigeria (CBN) has banned the importation of all foreign currencies except with approval. This was contained in a statement signed by CBN Director of Corporate Communications, Mr Ugo Okoroafor, on Tuesday in Abuja. It said that the move was sequel to the Bank’s withdrawal of the operating licence of 20 Bureaux de Change (BDCs). The CBN alleged that the BDCs purchased and sold huge sums of U.S. dollars with no documentation to show details of the transactions.

The statement quoted the Deputy Governor, Economic Policy, Dr Sarah Alade, as saying that the CBN frowned at the existence of strong foreign exchange demand pressure from domestic sources. She said that the CBN had observed a surge in dollar cash importation by banks and the huge cash sales of the dollars to BDCs by the banks.She disclosed that the purchase and sale of the cash were not adequately documented by the BDCs. Alade said that if the trend was not contained, it could pose grave threats to the value of the naira as well as the Nigerian economy which had gradually become dollarised. She said the CBN Governor, Malam Sanusi Lamido Sanusi, and his team decided to take immediate action to safeguard the naira and ensure its stability in the face of the aforementioned challenges.

Meanwhile, the CBN has also announced that the Retail Dutch Auction System (RDAS) would take effect from Oct. 2. This followed the suspension of the Wholesale Dutch Auction System (WDAS) at the official foreign exchange market. It said that the RDAS would allow only customers of deposit money banks to buy foreign exchange at the CBN through their banks. This is against the WDAS where the deposit money banks bought foreign exchange at the CBN on their own accounts and in turn sold to their customers. “The re-introduction of the RDAS is expected to prevent round tripping of foreign exchange purchased at the CBN official window to unauthorised channels. “Also, a circular has been issued mandating all deposit money banks to redeem all inward money transfers in naira to the recipients at the prevailing inter-bank foreign exchange rate. “This is in line with best practice,’’ it said.

The statement said that apex bank would continue to support the operations of BDCs in line with existing guidelines, adding that BDCs were still relevant in the foreign exchange market. “To guard against stifling the activities of the BDCs, the CBN has authorised all deposit money banks to deal at the official foreign exchange market rate. “It also warned that banks can only sell foreign exchange cash to BDCs subject to a maximum of 250,000 dollars per week per BDC. “The CBN also advised all BDCs to continue to comply with the conditions of their operating licences, including the proper rendition of returns with respect to the purchases and sales of foreign exchange.’’ The statement said that the apex bank had assured members of the public of its commitment to maintaining price stability and the preservation of the value of the naira in accordance with its mandate. (NAN)

Christ Embassy distributes 30m free Rhapsody of Reality

CHRIST Embassy Church, during the week, flagged off its nationwide free distribution of over 30 million copies of Rhapsody of Reality, a daily devotional of the church and Bibles, in commemoration of Nigeria’s 53rd Independence anniversary celebration,

Speaking at a ceremony in Makurdi, the pastor-in-charge of the church in Benue State, Gbuyi Olubitan said; “the free distribution of the devotional and Bibles is part of the church’s deliberate effort to galvanize the prayer life of Nigerians as we celebrate our independence as a nation.” While pointing out that the church and its partners had invested huge funds on the project, he said , “over 150,000 copies of the prayer book would be freely distributed in Benue state. “The Benue church will in the next few days also kick start its free medical outreach services in some communities in the state just as we will also embark on the completion of construction work on some blocks of classrooms in Makurdi town, all in commemoration of the celebrations,” he said.

Olubitan said the church had also undertaken to positively impact the lives of the youths of the state through periodic seminars and workshops that would prepare them for the challenges of becoming useful to themselves and the society.

According to him, “the church is deliberately reaching out to Nigerians as part of its social responsibility to people and the benefitting communities.” In his speech, Minister of State for Trade and Investment, Dr. Samuel Ortom who was the spe cial guest at the ceremony, urged the various religious groups in the country to always uphold the tenets of religious tolerance and harmony, which he said was key to checking the security challenge facing the country.

Represented by his wife, Mrs. Eunice Ortom, the minister said, “our country is today faced with a lingering security challenge which is a strange phenomenon in our body polity; while government strives hard to check the menace, I urge religious groups in the country to eschew those tenets that tend to divide our people along religious and social lines. I would also implore other churches that do not reach out to the people to emulate Christ Embassy.