CENTRAL BANK OF NIGERIA'S NEW DOLLAR RAIN.

From this week, the Central Bank of Nigeria (CBN) is determined not only to rain down dollars on Bureaux de change (BDCs) but also on small and medium scale enterprises.

According to the CBN spokesman, Isaac Okoroafor, as promised last week, the BDCs that funded their accounts as at yesterday, will pick up their allocation today Tuesday, April 11.

Also, a new window has been opened to make it east for small and medium enterprises (SMEs) to access not more than $20,000 through telegraphic transfer for importation of finished and semi finished goods.

According to Okorafor, this became necessary because the CBN noticed that SMEs were being crowded out of the inter bank market.

Such SMEs though must complete form M and support applications with pro forma invoice and Bank verification number.

The banks will in turn have to ensure that relevant shipping documents are submitted not later 60 days from the date of the fund transfer.

By the CBN's definition, SMEs are enterprises having asset base of between N5m and N500m and have labour force of between 11 and 300.

However, that leaves many small companies actively involved in imports out cold since they employ less staff and outsource major relevant services and get by with less N5m asset base.

Meanwhile, the usual inter bank wholesale funding will continue today with banks expected to have value for their respective bids.

On April 6 when $100m was offered by the CBN about $99.5m was purchased by the banks.

Mr Okorafor added that more forex may be sold to BDCs later in the week.

Wondering where the dollar rain in coming from? Well only the CBN has the answer, meanwhile happy shower in the rain.