The Central Bank of Nigeria has warned commercial banks in the country to open teller points for retail Foreign Exchange (FX) transactions at various locations or face sanctions.
This is contained in new circular to all banks signed by the apex bank’s Director, Banking Supervision Department, Ahmad Abdullahi, stating that it was issuing them a 4 weeks ultimatum to comply with the earlier directive given to them; asking them to open teller points for retail Foreign Exchange (FX) transactions at various locations.
Failure to comply with the 4 weeks ultimatum could result in severe sanctions including being barred from all future CBN FX interventions. The purpose of this exercise CBN clarified is to ensure public awareness regarding the availability of such facilities in branches of the bank at clearly disclosed prices.
According to CBN spokesman, Mr. Isaac Okoroafor, this intervention is a clear indicator of CBN’s avowed commitment to creating a liquid interbank FX market where all genuine requests will be met in line with extant FX guidelines. CBN clearly won’t stand for a breech this time around as clearly stated in the circular.
“The objective is to create awareness among members of the public regarding the availability of such facilities in branches of the banks at clearly disclosed prices.”
“Unfortunately, our observation has been that most Deposit Money Banks are in breach of the above directives. You are therefore given a period of four weeks up to October 13 to fully comply with the above directives or face stiff regulatory sanctions, including but not limited to being barred from all future CBN FX interventions.”
It would be in the best interests of all banks to comply with these directives or face the consequences, the circular stated.