CBN to Punish Banks Selling Dollar Above N360

By Modupe Gbadeyanka

Deposit Money Banks (DMBs) operating in the country have been warned to stop selling Dollar above N360 to customers who need forex for invisibles.

Those who need forex for invisibles are those in need of the foreign currency for Personal Travel Allowance (PTA), Basic Travel Allowance (BTA), school and medical fees as well as business trips.

Speaking with newsmen last week after the Bankers’ Committee meeting held in Lagos, the chief executive of FSDH Merchant Bank, Mrs Hamda Ambah, said the move was to achieve a uniform industry rate for forex in the country.

The Bankers’ Committee comprises the Chief Executives of banks operating in the country as well as the management of the CBN.

Before now, some customers in need of forex for invisibles were charged additional fees by the banks, making them buy the foreign currency above N360.

But the committee has directed all lenders trading in the foreign exchange market to stop the additional fees.

In order to ensure compliance, the Central Bank of Nigeria has urged customers to report any bank asking for additional fees for the purchase of forex for this category of requests.

Also addressing journalists after the meeting last week, the Chief Executive Officer of Citibank Nigeria, Mr Akin Dawodu, said exporters have been given a three-month grace to repatriate proceeds of their business into the country or be barred from banking services in the country.

“The Committee decided to give a 90-day moratorium after which the CBN will now sanction defaulters, which could include barring them from banking services.

“It is important that exporters repatriate their proceeds so that inflows can come in the expected fashion and the foreign reserves will continue to grow,” he said.

Exporters in the oil and gas industry have 90 days to repatriate their exports proceeds, while those in the non-oil sector have 180 days to comply.

It would be recalled that at its meeting in October 2017, the Committee had threatened to sanction exporters who fail to repatriate proceeds of their exports back to the country.

Within the same period the CBN also issued a circular stating that, “Any exporter that defaults in the repatriation of export proceeds within the stipulated period shall be barred from accessing all banking services including access to the foreign exchange market.”