New Forex policy: CBN will sanction erring bank CEOs - Sirealsilver

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New Forex policy: CBN will sanction erring bank CEOs

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                                                             CBN Governor, Godwin Emefiele

Chief Executive Officers and other officers of commercial banks that violate the new foreign exchange policy unveiled by the Central Bank of Nigeria (CBN) will henceforth be sanctioned, the apex bank warned.


“Any bank that fails to comply with the rules of this and other extant forex guidelines shall be sanctioned, which will affect the executive and other officers of the bank,” CBN Director, Financial Markets Department, Alvan Ikoku said in circular to all banks.

The CBN had after a meeting with Deposit Money Banks (DMBs) last Friday, issued new policy actions on  Monday aimed at easing access to foreign exchange for Personal and Business Travel Allowances as well as educational and medical fees, among others.

As part of its new policy which takes effect immediately, the CBN directed all banks to open forex retail outlets at major airports as soon as logistics permit them to do such.

The apex bank also announced a $500 million Special Wholesale Intervention Forward for banks to boost dollar liquidity in the interbank market, as well as guidelines for accessing the funds, did not specify what punishment offending banks or their officials shall suffer.

The $500 million intervention fund comes after forex guidelines that gave control of the retail end of the forex market to banks through improved funding.

Expressing optimism, CBN Acting Director, Corporate Communications Department, Isaac Okorafor, states that the wholesale intervention of the CBN would substantially ease the foreign exchange pressure on visible and invisible needs of customers, Okorafor assured that the bank would continue to make interventions based on qualified bids from the banks on the requests of their customers.
New Forex policy: CBN will sanction erring bank CEOs Reviewed by sirealsilver on February 23, 2017 Rating: 5                                                              CBN Governor, Godwin Emefiele Chief Executive Officers and other ...

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