CBN Injects Fresh $545m Into Forex Market, Threatens Sanction Against Banks

On the heels of its spirited efforts to achieve convergence of rates of Foreign Exchange, the Central Bank of Nigeria (CBN) has injected fresh $545 million into various segments of the FOREX market.

CBN’s Acting Director, Corporate Communications, Isaac Okorafor on Monday, gave a breakdown of the Bank’s latest intervention as:

*Retail Secondary Market Intervention Sales (SMIS) received $285 million.
*Wholesale SMIS received $100 million offer.
*The Small and Medium Enterprises (SMEs) window got $90 million.
*While the Basic Travel Allowances, tuition fees and medical payments window received $70 million .

The CBN equally threatened to sanction Deposit Money Banks (DMBs) caught in the act of flouting its directives.

The apex bank recalled that it had earlier in March directed the DMBs to open teller points for retail forex transactions as well as indicate rates of all trading currencies by displaying electronic boards across their individual branches for public awareness.

In a circular signed by its Director, Banking Supervision, Ahmad Abdullahi, the CBN said effective from October 13, 2017, it would no longer tolerate banks fond of contravening any of its directives.

Abdullahi said, “The CBN has given the erring banks a four-week period, expiring on October 13, 2017, to fully comply with its directives or face regulatory sanctions, which it noted include but not limited to being barred from all future CBN foreign exchange interventions.”