Forex: CBN queries banks

The Central Bank of Nigeria, CBN, has
denied allegations of irregularities in the foreign
exchange, forex, transactions among Deposit
Money Banks, DMBs and insisted that process
remains transparent.
Governor, Central Bank of Nigeria (CBN), Mr
Godwin Emefiele
Reacting to allegations that some banks were
using different rates for different forex end-
users, in connivance with officials of the apex
bank, CBN’s spokesman, Mr, Isaac Okoroafor,
in a statement, yesterday, that there was
nothing as such.
Okoroafor, said however, that some banks that
were discovered to have published inaccurate
data were queried but that they explained that
it was due to formatting errors which did not
affect the true rates.
He said, “Following media reports alleging
irregularities in the rates at which foreign
exchange was obtained by some individuals
and companies from different Deposit Money
Banks DMBs, under the new [60:40] foreign
exchange policy by the CBN, which prioritises
forex sales to manufacturers, agriculture, plant
and machinery, critical raw materials, among
others, we wish to make the following
clarifications:
“The CBN neither allocates foreign exchange
nor does it deal directly with bank customers.
“The CBN does not fix forex rates for
transactions by individuals or companies; In
line with our principle of transparency, we
directed DMBs to forward to us evidence of
forex sale to end users and to advertise same
in national dailies.
“Since the introduction of the new forex Policy
in 2016, we have published, monthly, the
evidence of sale from DMBs, as received from
the banks and without any alteration by us in
the spirit of transparency. We have recently
observed, however, that some DMBs forwarded
inaccurate data, which were erroneously
published and gave a wrong impression of
disparate rates.
“The DMBs involved in providing inaccurate
data have since been issued queries
accordingly. Some have returned a response
indicating that some of the figures were related
to formatting errors, which do not affect the
true rates of the affected transactions.
“As the constitutionally authorized industry
regulator mandated to manage the forex
market, maintain external reserves and to
safeguard the international value of the legal
tender currency, we wish to state unequivocally
that the CBN has a duty to perform and would
not indulge in acts capable of discrediting the
forex market.
“We therefore, wish to reiterate that the sale of
forex under the new policy is most transparent
and it is not intended to benefit any individual
or corporate body in anyway.”