Central Bank Bars UBA, GTBank, First Bank, FCMB & 10 Others from FOREX Market…See Details

By | May 3, 2017

In an official statement released in Abuja on Tuesday by CBN spokesman, Isaac Okorafor, the nation’s apex bank has barred a total of fourteen (14) banks from dealing with FOREX for SMEs.

CBN
The Central Bank of Nigeria (CBN), on Tuesday, barred First Bank, the United Bank for Africa (UBA)  and 12 others  from dealing in the Small and Medium Entreprises (SME) wholesale Forex window.
The other banks affected by the order are FCMB, Keystone Bank, Main Street Bank, Stanbic IBTC, Citi Bank, Enterprise Bank, Ecobank, WEMA Bank, Guaranty Trust Bank, Union Bank, SunTrust Bank and Standard Chartered Bank.
The CBN spokesman, Mr Isaac Okorafor, in a statement in Abuja, said they were barred, following persistent complaints that some Deposit Money Banks (DMBs) deliberately frustrate efforts by many SMEs to access forex from the new window created by CBN.
He said  the financial regulator took the decision to bar the erring banks based on field reports, which revealed that only eight banks out of 22 had sold forex to the SMEs segment since the inception of the new window.
He said the CBN frowned at the action of banks that declined to sell foreign exchange to SMEs to enable them import eligible finished and semi-finished items despite the availability of forex from the CBN.
Okorafor, said all banks that had refused to sell forex to the SMEs after accessing over 300 million dollars offered through the SMEs window since its creation last month will be sanctioned accordingly.
He listed the banks not barred to include: Access Bank Plc, Diamond Bank Plc, Fidelity Bank, Heritage Bank, Jaiz Bank, Sterling Bank, Unity Bank and Zenith Bank.
He warned that the CBN would not sit back and allow any form of instability in the interbank forex market through the actions of institutions or individuals.
He, therefore, urged all stakeholders to play by the rules for the benefit of the entire country and its economy.
Meanwhile, the CBN continued its massive intervention in the foreign exchange segment of the financial market by injecting $196.2 million  into the various segments of the Forex market on Tuesday.
According to Okorafor, the apex Bank also offered 100 million to authorised dealers at Tuesday’s Forex wholesale auction.
A breakdown of the other interventions indicate that the CBN made available $52 million  to the SME segment, while invisibles such as Personal and Basic Travel Allowance, medicals and tuition fees received $44.2 million.
The spokesman expressed confidence that the interventions would continue to guarantee stability in the market and ensure availability to individuals and business concerns.
It will be recalled that the CBN in April, opened a special foreign exchange window to cater to the SME sector.
The Window would enable SMEs import eligible finished and semi-finished items not exceeding $20,000  for an enterprise per quarter.
This is part of the CBN strategy to improve the fare of everyday imported commodity in the market.
-NAN

 
Author: ABBStaff- Samuel

Born and brought up in a Christian home. Attended Akwa Ibom State Polytechnic. National Diploma Holder from Business Administration & Management Department. He's also a Programmer and website designer.

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