CBN TO SANCTION BANKS ON FOREX RATES DOUBLE STANDARDS| TRAITNEWS

The Central Bank of Nigeria (CBN) has issued a notice to sanction any Deposit Money Bank (DMB) in breach of its earlier instruction to open teller points for retail forex transactions and to have electronic display boards in all their branches, showing rates of all trading currencies.

Yesterday, the naira appreciated to N359.06 per dollar in the Investors and Exports (I&E) Foreign Exchange, forex Window. the highest since september 2016.

Data from the Financial Market Dealers Quote, FMDQ showed that the indicative exchange rate for the I & E Window, known as Nigerian Autonomous Foreign Exchange, NAFEX rose to N359.06 per dollar, yesterday, from N360.25 per dollar last week Friday. Hence the naira has appreciated by N1.19 per dollar.

Meanwhile, the volume of dollars traded in the same window dropped to $131.84 million from $154 million last week Thursday. Specifically, the CBN in a circular warned that it would mete out stiff regulatory sanctions to banks that fail to comply fully with the directive by October 13, 2017 as it has been brought to their notice that most DMBs don’t adhere to their official stipulated rates, therefore causing irregularity in the system.

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