THE Central Bank of Nigeria (CBN) reportedly fined major banks and bureau de change operators hundreds of millions for committing all forms of infraction including selling foreign exchange to unauthorized persons, The Nation has learnt.

Speaking with some informed sources from two new generation banks, they confided in our correspondent that some banks were penalised recently for a forms of infractions bordering on forex racketeering.

Specifically, the sources said, “At issue is that some of the deposit money banks were involved in all forms of infractions, chief among which include selling forex to customers who otherwise were not allowed under the extant CBN guidelines to access same. What some of the banks did was to get forex at official rate and later resell to those illegal channels. When the CBN found out, the banks concerned were promptly fined. The same penalty applied to bureau de change operators.”

The President, Association of Bureau De Change Operators of Nigeria (ABCON), Mr. Aminu Gwadabe, who confirmed the development in a phone interview with our correspondent, said his members who were fingered in the forex racketeering saga had pledged to cooperate with the government.

Gwadabe recalled that his members held a meeting with the CBN last November in collaboration with the State Security Service (SSS), the Nigeria Police Force (NPF) on the need for the BDCs to adhere to the rules governing foreign exchange transactions.

According to ABCON boss, “At a meeting with the CBN November last year, the apex bank wanted outright revocation of 100 BDCs licenses but we settled for the N5million fine. A lot of banks were also fined hundreds of millions for similar infractions, so it’s not only BDC operators alone that are culpable.”

“We were told to follow the rules and make sure we cooperate with them. We have agreed to carry our members along on that, in ensuring that compliance is strictly observed. We have been sensitising our members and we have been holding meetings.

It may be recalled that the CBN had in 2015 released an import prohibition list for items banned from accessing forex exchange from commercial banks.

Simplyleo:
The forces of demand and supply is natural.

Arresting syndicates in forex is a mere cosmetic solution which can't stand the test of time.

If the dollars are in sufficient supply, I don't know how the forex operators will swindle anyone.

Just like sufficient availability of PMS at the filling station. How can the blackmarkers end up swindling me when I can just drive into any filling station and get my tank filled?

Since the naira has been devalued, I believe water will naturally find its level very very soon.

[/quote][quote author=Simplyleo post=87660839]The forces of demand and supply is natural.

Arresting syndicates in forex is a mere cosmetic solution which can't stand the test of time.

If the dollars are in sufficient supply, I don't know how the forex operators will swindle anyone.

Just like sufficient availability of PMS at the filling station. How can the blackmarkers end up swindling me when I can just drive into any filling station and get my tank filled?

Since the naira has been devalued, I believe water will naturally find its level very very soon.

ehbellsho:
I am trying to understand but still can't/don't get it.
pls, anyone with the summary package?

imiski:
Some select individuals and organisations used to buy the dollar at 307 naira as opposed to the normal exchange rate you and I would buy in the market. But now the central bank says no more consentions all of us would buy at the same rate.

agbari1:
What this means is that dollar was exchanged BY CBN for importer AT N357 and N307 for exporter. This means you you pay more Naira to get dollar if you are importing. This goes for payment of school fees abroad and other goods and services. Black market operators also get dollar from CBN at 357 to 1 dollars. That is why at black markets the exchange rate hovers around 358 to 362 to one dollar during the period. Government receives dollar from the sales of her oil which is kept by CBN. Projected budget of government for 2020 is based on oil benchmark price of 57 dollar per barrel. The price of oil has fallen in the global market to below $30. This means that government revenue has fallen substantially as oil accounts for about 90% of export earnings. In order to get more Naira to pay for internal spendings in the country such as payment of salaries and contractors, government must get more Naira. In doing so, quantity of Naira to be exchanged for dollar must be increased. Government doesn’t want to use the term “devaluation” hence it used exchange rate equalization. This means that no more 307, 357 Naira exchange to the dollar anymore but N380 for all multiple exchanges to a dollar. So our official rate to one dollar is now N380. Black market operators will be selling at amount higher than this may be N400 to one dollar depending on the availability of dollar in the market. Remember that over 50 oil cargo of Nigeria is on the see without willing buyers ad the demand for oil has reduced in the international market. The price is on the free fall because of Saudi and Russia price and output war. If the price of oil falls further to say $20 per barrel, Naira nearly collapse. Government may ban importation of less essential goods. It may go and borrow money from from international financial institutions such as IMF with stringent measures. It may devalue the currency further. Those with fixed income will be worse off. Prices of goods and services will go up. Demand for goods and services will fall. It will affect company revenue and lead to job loses.

post=87669123:
Reading...

SweetJoystick:

Who released you from prison ban no do well at all

post=87669464:
u wan cry small b4 u sleep tonite shey?

AroOkigbo:
It is easier for a camel to ass thorough the eye of a needle than for Nigeria to get better again.