In furtherance to its directive to commercial banks to sell forex to customers, the Central Bank of Nigeria has asked the banks to create mobile applications and alert systems to update customers of their foreign exchange movement.
This directive came after the CBN’s decision to stop sales of forex to Bureau de Change operators and the directive to deposit money banks to establish teller points to fulfill legitimate forex requests from customers.
The new directive was revealed in a circular signed by the Director, Banking Supervision Department, Haruna Mustafa, which was issued on Wednesday with the reference number: BSD/DIR/PUB/LAB/14/082.
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The circular reads: “Further to the Monetary Policy Committees (MPC briefing of July 27 2021 of Deposit Money Banks (DMBs are hereby reminded to set up teller points at designated branches across the country to fulfil legitimate FX requests for Personal Travel Allowance (PTA Business Travel Allowance (BTA), tuition fees, Medical payments, SMEs transactions, amongst others.
“In this regard DMBs are also required to adequately publicize the locations of the designated branches and make necessary arrangements to sell FX to customers in cash and or electronically in compliance with extant regulations.”
Banks were also advised to ensure that no customer is turned back or refused forex provided that documentation and all other requirements are satisfied equally.
“Undue delays rationing and/or diversion of FX is strongly discouraged whilst DMBS are required to establish electronic applications and alert systems to update customers on status of their FX requests
“As communicated during the briefing, toll-free lines have been set up at the CBN for bank customers to escalate unresolved complaints related to their FX requests,” the statement read.
The apex bank restated that it would continue to closely monitor banks conduct and compliance with the directive, adding that any breach of the directive would be severely sanctioned
The CBN had on Tuesday announced that it would no longer sell forex to bureau de change operators due to price manipulation and corruption. It asked Nigerians who want to buy forex to go to banks.
Although the new policy caused the naira to fall farther against dollar, it has been hailed by many as the right step to rescue the Nigerian currency, which has been on free fall since 2015.
Prof. Uche Uwaleke of Finance and Capital Market said the decision is in the best interest of the country, though it has demerits.
“It is consistent with the move by the CBN to unify exchange rates and bring more transparency to the forex market. Exchange rate unification is in line with the IMF and World Bank’s recommendations and so improves the country’s profile and credit standing before international financial institutions,” he said.
The CBN said the BDCs were flouting the regulation that allowed them to sell a maximum of 5,000 dollars, selling millions of dollars per day. The apex bank noted that the bureau de change operators were also aiding money laundering and other financial crimes.
However, many believe that the new policy will only aggravate the already bad situation of naira, since it will take a long time to be stabilized because there are a few banks compared to the large number of BDCs. Besides this concern, experts say the apex bank needs to ensure that all bank branches comply with the directive to make it work.
Apart from the directive to banks to develop forex apps, the CBN also provided contact details where customers seeking forex could report any bank going against the rules.
“Once a customer presents all required documentation to purchase forex, the commercial banks should ensure they get the forex. Any customer that is denied should contact the CBN on 0700385526 or through the email- [email protected],” the CBN said.