CBN to sanction banks that don’t have forex sales point

CBN Governor, Mr. Godwin Emefiele

The Central Bank of Nigeria on Monday threatened to sanction any Deposit Money Bank in breach of its earlier instructions to open teller points for retail foreign exchange transactions in all locations.

The apex bank’s acting Director, Corporate Communications, Isaac Okorafor, in a statement on Monday in Abuja, said the bank would also penalise banks which failed to install electronic display boards in all their branches, showing rates of all trading currencies.

The CBN, in March, had directed banks and authorised dealers to open a teller point for retail foreign exchange transactions, like Personal and Business Travel Allowances, including buying and selling, in all locations, to ensure access to foreign exchange by their customers and other users without any hindrance.

The circular warned that the CBN would mete out stiff regulatory sanctions to banks that failed to comply fully with the directive by October 13.

The March 2017 circular also directed DMBs to have electronic display boards in all their branches, showing rates of all trading currencies, which it urged customers to insist on the displayed price for processing of their foreign exchange transactions.

It noted that the objective was to create awareness among members of the public regarding the availability of such facilities in branches of the banks at clearly disclosed prices, so that customers would not be cheated.

Okorafor said that the CBN was giving erring banks a four-week period, expiring on October 13, to fully comply with its directives or face regulatory sanctions, which would include but not limited to being barred from all future CBN foreign exchange interventions.