Worried by the prevalent of foreign exchange malpractces, resulting in poor showing of the local currency against other international ones like the dollars, the Central Bank has threatened to Suspend operating licenses of those found culpable after the ongoing investigations.
Consequently, CBN, in a memo through O. A Nnaji, director, Trage and Exchange department, dated September 10, 2021, said it is incumbent on all Deposit money banks to not only know their customers (KYC requirements) but also know their customers’ businesses (KYCB requirements).
“The CBN wishes to remind all banks that it is their responsibility to not only know their customers (KYC requirements) but also know their customers’ businesses (KYCB requirements).
“Given this responsibility , and in view of recent occurrences in the market, the CBN will like to remind banks to desist from all forms of FX malpractices.
“We wish to reiterate that FX operating licences of any bank or banks that are found culpable with ongoing investigations will be suspended for at least one year,” the director said.
Nnaji urged all the DMBs concerned to take note and ensure compliance.
Also, naira depreciated by 0.04 percent as the dollar was quoted at N411.67 at t the I&E forex market compared with N411.50 a dollar it closed on Wednesday.
Most participants maintained bids between N400.00 and N413.00 per dollar at the official window.
The naira has weakened against the dollar by 6 percent since the Central Bank of Nigeria (CBN) announce its suspension of dollar sales to the Bureau de change operators in abid to support the naira and check malpractices in the forex market.
