Govt Bans Ecobank From Forex Sales Over Regulation Breach

It was gathered that Kenya’s apex bank took the decisive action after discovering that the lender had flouted forex regulations. The suspension will end on April 4th, 2022.

According to the East African, Kenyan banks are required to adhere to a rule which requires them to match their foreign currency assets with their liabilities. They do this by ensuring that the difference between their foreign currency assets and their liabilities “does not exceed 10 percent of core capital”.

The Central Bank of Kenya said in a press statement that Ecobank Kenya Limited breached this rule.

“In investigating Ecobank’s trading practices and a specific transaction that it had concluded, it is evident that Ecobank did not have sufficiently robust risk controls to prevent breaches on its foreign exchange exposure limits, or the inaccurate reporting of its position… Ecobank’s acknowledgement of its obligations as an authorised foreign exchange dealer and its commitment to address the underlying issues is noted,” the apex bank said.

https://worldtopnewsng.com/govt-bans-ecobank-from-forex-sales-over-regulation-breach/

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Kenya