CBN lifts FOREX ban on 9 banks, as naira hits 423 a dollar - Daily Trust

September 1, 2016
By Hamisu Muhammad

The Central Bank of Nigeria (CBN) has lifted the Foreign Exchange (FOREX) ban placed on nine banks over breach in remittances to the Treasury Single Account (TSA). The CBN last week banned the nine deposit money banks (DMBs) from the foreign exchange market for hiding over $2 billion belonging to the Nigerian National Petroleum Corporation (NNPC) and the Nigeria Liquefied Natural Gas (NLNG).

However, addressing the press yesterday, the Director Banking Supervision, Tokumbo Martins, said after series of discussions with the CEOs of the banks and following various investigations, the apex bank decided to lift the ban.

She said already, the banks had submitted the schedule of payment of the retained revenue to the TSA which the CBN accepted.

The nine affected banks are United Bank for Africa (UBA) -$530m; First Bank of Nigeria (FBN)- $469m; Diamond Bank Plc-$287m; Sterling Bank Plc-$269m; Skye Bank Plc -$221m; Fidelity Bank -$209m; Keystone Bank- $139; First City Monument Bank (FCMB) -$125m; and Heritage Bank-$85m.

Meanwhile, the naira yesterday traded at 423 to a dollar at the black market from 408 the previous day, as the scarcity of the foreign currency persists. Traders attributed the sharp decline of the local currency to the inability of the banks to sell the hard currencies to the Bureau de Change operators at the time when the demand for settlement of schools fees is high. Since the suspension of the 9 banks last week from the forex trading by the CBN, the value of naira keeps depreciating on daily basis.

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Steven Rich
Sep 17, 2018:
Well done
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