CBN To Sanction Commercial Banks Engaging In Illegal FX Sales

By Solomon Ekanem

The Central Bank of Nigeria (CBN) has said it will move against Deposit Money Banks currently engaging in illegal foreign exchange trade.

This was disclosed by the acting Governor of CBN, Folashodun Shonubi, during a lecture titled: “Diaspora Remittances and Nigerian Economic Development”, in Abuja

According to Shonubi, there was a need to restrict the remittance of illegal FX and channel them via appropriate means to maximise economic growth.

Shonubi at the event also announced the formation of a commission to pay unscheduled visits to banks accused of unlawfully selling dollars.

CBN To Sanction Commercial Banks Engaging In Illegal FX Sales

He said, “We need to name and shame commercial banks involved in such malpractices.’’

The acting governor also emphasized the shortcomings of the present remittance system, in which he estimated that the cost of transferring money to Sub-Saharan Africa from the diaspora at about 8–9% of every $100, which is described as the highest in the world.

He, however, noted that Nigeria received about $16.7 billion in remittances, with the vast majority of the money outside the official foreign exchange market.

The CBN’s decision comes amid the crash of the naira as it has reportedly dropped to over ₦950/$1 at the parallel market.

The worsening case of forex scarcity also makes the situation more intense as deposit money banks have been accused of diverting most of their forex to the unofficial foreign exchange market rather than selling to their customers.

The unification of the naira by President Tinubu was aimed at improving the currency as multiple exchange rates had led to foreign currency shortages for ages.

Under suspended apex bank chief Godwin Emefiele, the situation worsened, making it difficult for investors to take out money from Africa’s biggest economy.

BY IYABO AINA

Publisher Of News Rain Nigeria