Economy

CBN Suspends 19 Banks From Forex Sale To Bureaux De Change

Published

8 years ago

October 13, 2016

The Central Bank of Nigeria (CBN) has suspended all the banks, with exception of First Bank, from selling dollars proceeds of international money transfer services (IMTS) to Bureaux De Change (BDCs).

Two months ago, the CBN had directed banks to sell proceeds of their international money transfer services to BDCs. This was in a bid to address the steady and sharp depreciation of the naira in the parallel market. Vanguard investigation however revealed that most of the banks were not complying with this directive, preferring to do brisk business with the proceeds.

This generated several complains from the BDCs, with the Association of Bureaux De change Operators of Nigeria (ABCON) calling for a review of the policy measure. Vanguard reliably gathered that the CBN decided to sanction the banks following investigation which revealed most of the were either not complying or were circumventing the directive.