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CBN suspends 19 Banks from sale of Forex to BDCs

All the banks, with the exception of First Bank have been suspended by the Central Bank of Nigeria (CBN) from selling dollar 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 reliably gathered that the CBN decided to sanction the banks, following investigation, which revealed that most of them were either not complying or circumventing the directive.

This development was also confirmed by ABCON President, Alhaji Aminu Gwadabe. In a message to BDCs, he said: 

"This is to inform members of the directive of CBN to deposit money banks with the exception of First Bank Plc, to suspend the sales of the proceeds of international money transfer to BDCs till further notice. Please be guided when buying through the bank window.

"Members should please note that the reason for the stoppage of other DMBs except First Bank in selling proceeds of IMTSOs is to mop-up the held dollar position by non-compliant banks and make it available to all BDCs nationwide soon.

"Please we advise members to be patient and await ABCON’s further directives soon."

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