CBN Orders Banks to Batch all Returned Unused Forex

July 5, 2017
forex Black Market

CBN Orders Banks to Batch all Returned Unused Forex

By Dipo Olowookere

Banks operating in the country and also involved in the sale of foreign exchange (forex) have been given a new procedure on how to return all unutilised forex to the Central Bank of Nigeria (CBN).

In a circular posted on the CBN website on Monday, the apex bank explained that it gave this new directive following complaints from “Deposit Money Banks (DMB) over the delay in getting Naira value for unutilised portion of forex repatriated to the CBN.”

The circular, dated June 23, 2017, and signed by the Director in charge of Banking & Payments System Department of the apex bank, ordered all authorised dealers to “comply accordingly” with the new instruction.

It was explained that the new order was aimed at solving the “current challenges in returning Naira to DMBs for unutilised forex and to improve on the current settlement process.”

The banks have been told to “batch all unutilised forex returned to CBN per session/auction with effect from June 26, 2017.”

Explaining how this process works, the central bank said, “Where forex was purchased from CBN for a particular session, all unutilised portion of the session should be batched and forwarded to the CBN for settlement on weekly basis.”

“In the same vein, all inflows from the proceeds of International Money Transfer Operators (IMTO) should be batched and forwarded to CBN for settlement on a weekly basis,” the circular by the CBN said further.

Dipo Olowookere

Dipo Olowookere is a journalist based in Nigeria that has passion for reporting business news stories. At his leisure time, he watches football and supports 3SC of Ibadan.

Mr Olowookere can be reached via [email protected]

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