Analysts believe this will motivate BDCc to sell dollars to intending travellers for
invisible transactions thereby removing artificial scarcity.
Visa SVP of Innovation and Strategic Partnerships Shiv Singh shared a similar vision, mentioning the need for
invisible transactions, a frictionless consumer experience and equal support for brand awareness, product development and innovation as keys to success.
The balance of 40 per cent should be used to meet other trade obligations, visible and
invisible transactions. For the avoidance of doubt, authorised dealers are to continue to publish weekly sales of FX to end users in the national newspapers and to render statutory returns on same to the CBN promptly.
The CBN announced relaxed measures the same day following its Monetary Policy Committee (MPC) meeting: foreign exchange bought on the interbank market and biweekly auctions could now only be used for 'funding of letters of credit, bills for collection and other
invisible transactions," and bureaux de change would be restricted from access.
Invisible Dollars,
Invisible Transactions: the Future of Personal Financial Clouds
Reforms have included: (1) liberalisation of
invisible transactions in 1997, leading to current account convertibility; (2) recapitalisation of state banks to reach an 8% capital adequacy ratio by 1999; (3) creation of treasury bill and bond markets which have expanded; (4) privatisation of state-owned companies; (5) continued efforts to cut tariffs; (6) elimination of profit margin controls in the pharmaceuticals industry by 1998; (7) cuts in public spending and reform of the civil service, aimed at generating a budget surplus; and (8) reform of the agricultural sector, including privatisation of land, backed by a World Bank structural adjustment loan (see background in Vol.
Reforms have included: (1) liberalisation of
invisible transactions in 1997, leading to current account convertibility; (2) recapitalisation of state banks to reach an 8% capital adequacy ratio by 1999; (3) creation of treasury bill and bond market; (4) privatisations of state-owned companies; (5) continued efforts to cut tariffs; (6) elimination of profit margin controls in the pharmaceutical industry by 1998; (7) cuts in public spending and reform of the civil service, aimed at generating a budget surplus; and (8) reform of the agricultural sector, including privatisation of land, supported by a World Bank structural adjustment loan.
Also in April, CBN, created a special window, the Investors and Exporters Foreign Exchange Window (I and E FXW) to further boost foreign exchange liquidity and to ensure timely execution and settlement for eligible
invisible transactions - such as loan repayments, loan interest payments, dividend/income remittances, capital repatriation, management services fees, consultancy fees among others while international airlines ticket sales remittances were excluded.
The balance of 40 per cent should be used to meet trade obligations, visible and
invisible transactions.
