CEM REPORT, FINANCE | Banks engaging in the illegal sale of forex has hit the watchlist of the Central Bank of Nigeria (CBN) as the apex bank has declared sanctions on bank caught in such act.
This is as the apex bank revealed that the official foreign exchange market, otherwise known as the Investors and Exporters (I&E) window, will be renamed the Nigerian Foreign Exchange Market (NFEM).
The Acting Governor of CBN, Folashodun Shonubi, disclosed this at the National Institute for Security Studies, Abuja, Executive Intelligence Management Course (EIMC) 16.
“We will rename the foreign exchange market, known as the I & E market, to the Nigerian Foreign Exchange Market, as it is the sole market we acknowledge.”
Speaking during his lecture titled: “Diaspora Remittances and Nigerian Economic Development”, stated that the regulator would create a task force to pay unscheduled visits to banks accused of unlawfully selling dollars.
“We need to name and shame commercial banks involved in such malpractices.”
He emphasized the significance of taking stringent measures to limit illegal remittances and direct them via appropriate channels to maximize economic growth.
Shonubi stated that the CBN discontinued the Naira 4 Dollar Scheme which offered ₦5 return on every dollar repatriated noting that it was ineffective.
While acknowledging the impact of incentives in attracting people to the formal market he noted that the Naira 4 Dollar Scheme did not encourage citizens to engage in formal market transactions as expected.
Forex has continued a steady rise with the dollar hitting ₦950/$1 at the parallel market amidst scarcity and alleged hoarding of the currency by the banks.