Nigerian Bank Releases New Requirements To Buy Dollar at Rate Below N1,570

• Wema Bank has released requirements for its customers looking to buy foreign currencies at the official rate.
• The bank stated that for a customer to purchase foreign currencies, one of the requirements is to provide a valid tax clearance certificate
• The dollar is sold at a cheaper rate in the official market compared to the black market, where it is priced above N1,560

Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.

Wema Bank has announced the availability of foreign exchange (FX) for personal transactions under the newly launched Electronic Foreign Exchange Matching System (EFEMS).

The bank stated this in an email update sent to customers titled; 'Important update: EFEMS funds for invisible transactions are now available.

Wema Bank explained that the EFEM provides customers access to FX for Tuition Fees, Personal Travel Allowance (PTA), Business Travel Allowance (BTA), medical expenses, and other personal transactions under Form A.

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Requirements to buy dollars at EFEM

The bank also listed various requirements for customers looking to buy dollars from the official market which include:

• Compliance with all existing Form A regulatory requirements.
• Submission of a duly completed bid letter on the Trade Monitoring System (TRMS) portal, indicating the purchase rate.
• Applicants must have sufficient naira funds in their accounts at the quoted bid rate.
• A valid tax clearance certificate is required.

Wema Bank also stated that all new and existing FX requests must meet these updated conditions before processing can proceed.

The statement added:

"Customers interested in submitting their FX bid requests are advised to contact their account officers. Further inquiries can be directed to the bank via email or via call."

Naira to dollar exchange rate

There are advantages to buying from the official market due to the lower exchange rate compared to the parallel market.

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The naira against the US Dollar at the Nigerian Autonomous Foreign Exchange Market (NAFEM) sells at N1,510/$1.

While the pound sterling and the euro in the spot market closed at N1,872.10/£1 and N1,559.96/€1, respectively.

While in the black market naira is valued against the US Dollar at N1,570/$1.

What to know about the EFEM?

EFEMS is a platform introduced by the Central Bank of Nigeria (CBN) to facilitate foreign exchange (FX) transactions in the Nigerian Foreign Exchange Market (NFEM).

EFEMS aims to enhance transparency and governance in FX trading.

According to CBN, the EFEMS provides real-time pricing and visibility of buy and sell orders, automating the matching of orders to ensure transactions occur at the most competitive prices available.

EFEM reduces the risk of price manipulation and market distortions while curbing speculative trading and mitigating volatility.

BusinessDay reports that before EFEMS was introduced, Nigeria’s foreign exchange market depended on manual or semi-automated trading and was prone to inefficiencies and manipulation.

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This has changed as EFEM centralises transactions on a single platform, ensuring real-time visibility and efficient processing.

Customs exchange rate

Legit.ng earlier reported that Nigerian importers are set to pay more to clear their goods as the CBN introduced a new customs rate to clear goods.

The new rates reflect the performance of the naira in both the official and unofficial markets.

The Centre for the Promotion of Private Enterprise (CPPE) has urged the federal government to peg the customs duty exchange rate to N1,000 per dollar.

Source: Legit.ng