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Friday, 14 October 2016
19 Banks Suspended By CBN From Forex Sale to BDCS
The Central Bank of Nigeria (CBN) has suspended all the banks, with the exception of First Bank, from selling dollar proceeds of International Money Transfer Services, IMTS, to Bureaux De Change, BDCs.
Two months ago, the CBN had directed banks to sell proceeds of their international money transfer services to BDCs. This was in a bid to address the steady and sharp depreciation of the naira in the parallel market.
Vanguard investigation, however, revealed that most of the banks were not complying with this directive, preferring to do brisk business with the proceeds.
This generated several complaints from the BDCs, with the Association of Bureaux De change Operators of Nigeria, ABCON, calling for a review of the policy measure.
Vanguard reliably gathered that the CBN decided to sanction the banks, following investigation, which revealed that most of them were either not complying or circumventing the directive.
A top CBN official confirmed this development to Vanguard yesterday.
Speaking on condition of anonymity, the source said: "We discovered that all the banks were not selling to the BDCs, while a few that did so occasionally short-changed them by selling at higher margin.
"The only exception was First Bank, which had 500 BDCs and sold to them on regular basis. So we decided that since the bank was selling the dollars as directed, we would allow it to continue to do so.