Business Hilights
Tracking Nigeria's Headline Business News Online

Banks abusing CBN’s forex guidelines in trouble as apex bank plans examination visit

Out of fears and suspicion of infractions by some commercial banks in the disbursement of forex allocations, the Central Bank of Nigeria (CBN) will this week send examiners to banks for an oversight function on the administration of all dollar injections.

The CBN had been selling dollars to banks at N357/$1, while banks will sell to their customers at N360/$1 for invisibles (BTA, medicals, fees, etc).

It would be recalled that CBN prohibits banks from selling forex funds meant for invisibles to Bureau D’ Change (BDCs( which had been the fears of the apex bank, otherwise, the BDC operators for ought to have collapsed because they are supposed to be cash-strapped.

Another angle of checks by the CBN on how the banks are following it guidelines include a directive to post new rates in the banking halls of their branches immediately.

Business Hilights recalls that naira has in the past weeks seen a geometric appreciation following interventions by the central bank, but analysts describe the entire scenario as cosmetic that may not pass the test of time.

Besides, as a way of consolidating recovered grounds in forex management, the Central Bank of Nigeria on Monday introduced new Forex rates, saying it would no longer trade the naira at N375 per dollar for invisibles, but at N360.

The apex bank also noted that it will now sell at N357 to banks that will then make only N3 by selling at N360 for buyers for invisible use including school fees, medical bills and travel allowances.

CBN also made it clear that Nigerians can now get the dollar at N360 across all commercial banks within the country.

“The CBN [is] to sell forex to banks at N357/$1, while banks will sell to their customers at N360/$1 for invisibles (BTA, medicals, fees, etc).

“CBN directs banks to post new rates in the banking halls of their branches immediately. CBN examiners to visit banks to ensure the new rates are implemented.

“CBN prohibits banks from selling forex funds meant for invisibles to BDCs.

The apex bank also empowered customers to quickly report banks that practice any form of infractions or breaches in the administration of the new forex policy.

The Naira recorded an appreciation of 12.36 per cent at the parallel market in the last one week.

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More