Forex: CBN Issues Stern Warning To Banks’ CEOs

By Fola James

The chief executive officers of commercial banks in the country have been warned to desist from causing forex scarcity as the Central Bank of Nigeria, CBN moves to ensure liquidity in the foreign exchange market.

The stern warning was issued to chief executives of financial institutions at a meeting which was held at the instance of the CBN Governor, Godwin Emefiele recently, the magazine has learnt.

The parley, according to those privy to it was called to address series of complaints by customers that their banks are not making forex available to them for important purposes.

The aggrieved customers include those that want to pay for their children/wards school fees abroad and others who needed such transactions to settle what an insider in the CBN described as ‘invincible items, which are legitimate”.

Worried by the spate of complaints, the apex bank has also promised the banks that more foreign exchange will be allocated to them to address the immediate demands of customers, which includes requests of travelers seeking foreign exchange for travel allowances, payment of tuition and medical fees, among other requests, with a strong warning to the banks that such allocations should not be diverted.

Some banks when allocated forex by the CBN at official rates, sell same to bureau de change operators who sell at parallel market rates with a view to making higher profit for themselves and enabling banks, insiders in the banking sector told The Source.

Sources close to the CBN told the magazine on Monday that the apex bank Governor is seriously worried that some banks are frustrating its efforts to stabilize the volatile foreign exchange market to their selfish ends.

Emefiele told the CEOs to desist from denying customers, particularly travelers, the opportunity to purchase foreign exchange, for the purposes which includes Personal Travel Allowance, PTA, Basic Travel Allowance, BTA, tuition fees, and medical payments as well as Small and Medium Enterprises, SMEs transactions.

Going forward, the Emefiele-led apex bank has now established a hotline which customers can call when experiencing problems with the banks when it pertains to foreign exchange requirements, according to the Acting Director, Corporate Communications Department at the CBN, Osita Nwanisobi, who also confirmed the meeting with DMBs chief executives.

The CBN has urged customers with genuine complaints to call the CBN via the Bank’s toll-free line: 07002255226 or send an email to [email protected] if their requests are not met.

According to Nwanisobi, the apex bank remained committed to ensuring liquidity in the foreign exchange market, and this will be ensured that those that need forex for legitimate means get it.

“The CBN agreed to increase the amount allocated to banks for travelers, Small and Medium Enterprises among others.The banks also agreed to operate something akin to foreign exchange imprest account such that the coffers of banks would be replenished so long as they retire the initial amounts to the satisfaction of the CBN, ”.Nwanisobi said.

He urged interested members of the public seeking to purchase foreign exchange for PTA, BTA, payment of tuition fees or medical fees to approach their respective banks for that purpose.

“We wish to assure members of the public that the CBN shall continue to monitor market developments and is committed to ensuring an efficient FX market for all legitimate users,” he said.

He advised customers to approach customer service representatives of their designated banks should they encounter challenges.