Nigeria’s apex bank, Central Bank of Nigeria, CBN, has suspended all the banks in the country from selling dollar proceeds of International Money Transfer Services, IMTS, to Bureau De Change except First Bank of Nigeria, FBN.
The CBN cited none compliance of its directives by the banks as the reason for the suspension.
The CBN had earlier this year suspended nine commercial banks for failing to remit about $2.3 billion funds of the Nigerian National Petroleum Corporation, NNPC, to the Treasury Single Account, TSA, operated by the federal government, and were later reinstated after presenting some payment plans.
The apex bank had two months ago directed banks to sell proceeds of their international money transfer services to BDCs.
The directive was given in a bid to address the continuous fall of the naira in the parallel market of which the banks ignored, opting to doing brisk business with the proceeds.
The outcome had generated several complaints from the Bureau De Change with the Association of Bureaux De change Operators of Nigeria, ABCON, calling for a review of the policy measure.
The Central Bank, after due investigation which showed that most banks in the country were either not following the order or were short-changing DBCs by selling the dollar at higher margin, except First Bank, had decided to suspend them.
The suspended banks have also been directed to give up 25% of the dollars received through international money transfer services to bureau de change.
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