CBN Probes 2 Banks for Forex Malpractices

The Central Bank of Nigeria (CBN) has commenced investigation of two banks for foreign exchange malpractices, according to report by Vanguard Newspapers.

The two Tier 2 banks are being investigated for unbridled sale of foreign exchange to BDCs related to the banks.

One of the banks with headquarters in Victoria Island recently appointed a new Chief Executive Officer, while the other with headquarters in Lagos Island, recently celebrated its 30th anniversary. Investigation revealed that in some instances the banks sold foreign exchange in millions to each BDC per time.

According to Vanguard, the apex bank however got wind of these unbridled foreign exchange sales and sent its examiners to investigate the banks as well as impose stiff penalties on them.

Investigations also revealed that though the apex bank has not barred the banks from selling foreign exchange to BDCs; they have however stopped doing so.

It would be recalled that last week the apex bank banned banks from selling its intervention foreign exchange in the interbank market, or to BDCs.

In a circular with reference number TED/FEM/FPRB/GEN/01/020, dated October 28, 2014, the CBN also directed that funds purchased through its interventions at the interbank market should be utilised within two working days of delivery, at a rate not more than 10 kobo above the purchase rate.

The CBN circular also directed that unutilised funds within two days of delivery should be returned to the Bank at the original purchase rates.