Chief executives of banks have assured no hidden charges in the sale of foreign exchange as they declared their readiness to meet the demands of Forex in the country.
The CEOs under the aegis of the Committee of Chief Executives of Banks at a virtual parley with the media also said they are not interested in procuring bureau de change licenses to dispense the new responsibility thrust on them by the central bank of Nigeria (CBN)
At a media briefing chaired by the chairman, and the managing director of Access Bank, Herbert Wigwe, other CEOs in attendance include Segun Agbaje of GTCO, Yemisi Edun of FCMG amongst others.
The briefing was in reaction to the CBN circular with Ref No: BSD/DIR/PUB/LAB/14/052 which gave a directive to Deposit Money Banks (DMBs) to set up teller points at designated branches and sell Foreign Exchange customers in need.
The directive in the circular signed by Haruna Mustafa, Director, Bank Supervision Department, was a follow up to the stoppage by the CBN, of the sale of forex to the Bureau De Change (BDC) operators in the country.
With this development, banks are now to attend to legitimate FX requests for Personal Travel Allowance, Business Travel Allowance, tuition fees, medical payments and SMEs transactions, among others.
The regulator also disclosed that a toll-free line had been set up at the CBN for bank customers to escalate unresolved complaints related to their FX requests.
Speaking at the media briefing, Herbert Wigwe assured of the readiness of the banks to meet the demands of the customers without any additional costs, noting that they have more capacity than the BDCs
“Banks have broader network than the previous sources and if you look at the branch network of all the banks in the country, I am not sure that the alternatives have resources like banks to provide this service to everybody”.
He allayed the fear of hidden charges said the transaction comes at no additional cost to the customers.
“There is no one-cent additional charge. It is unfortunate that bankers always come under pressure every time because of accusations of hidden charges. There is no additional charge in this service,” he stated.
Segun Agbaje, the group managing director of GTCO, promised that the banks will provide several channels for the customers to get their supply for their needs as he assured of the readiness of the banking system.
“They can start to come from today. We are ready to fund their demands”. stating that different banks have different strategies to ensure there are no hitches.
He stated that the control is centralised in each bank while the service is decentralised so as to be able to cater to many at the same time.
“We will run a transparent system and the compliance will be very strict because there will be sanctions. Anyone that refuses to comply with the rules will be sanctioned by the regulator and the law enforcement agencies” as he warned those that could want to come with fake documentation or passport to beat the process.
In her contribution, Yemisi Edun of FCMB assured that customers will have the same experience across the board irrespective of the bank as she allayed that the services may be poor in some banks.
“We have done this with remittance where we dedicate desks to attend to customers and customers will be directed to the desks once they have proper documentation.
In conclusion, Wigwe stated that apart from the injection that could be coming from the CBN, the banks also have their sources for foreign exchange which include from International Monetary Transfer Organisation, Diaspora remittances, and others from where they can meet the customer’s demands.
“We are putting structure and infrastructure in place to meet the demands of the customers but they should come with proper documentation” Wigwe stated
The apex bank expects the DMBs 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,
While CBN said the banks should ensure that no customer was turned back or refused FX provided that documentation and all other requirements are satisfied, it also outlaws undue delays, rationing and/or diversion of FX while it compels DMBs to establish electronic application and alert systems to update customers on the status of their FX requests, the circular added.
Naira Gained Slightly at I&E Forex Window to N412.81/$US
Despite the Nigerian Naira trading at a record-low across the nation’s unregulated black market, the embattled currency opened slightly higher at N412.81 to a United States Dollar on Monday at the Investors and Exporters Forex Window, representing an increase of 0.08 percent when compared to the N412.88 it closed on Friday.
The improvement in Naira value was after the Central Bank of Nigeria (CBN) directed all depoisit money banks operating in the country to freeze bank accounts linked to Oniwinde Olusegun Adedotun, the founder of www.abokfx.com, a forex rate publishing platform.
Godwin Emefiele, the Governor, CBN had blamed black market and bureau de change operators for the constant plunge in Naira value against its global counterparts and insisted that forex rates remained the apex bank stipulated rates and not the unregulated rates imposed by speculators and hoarders and published to the public by Abokifx and other business platforms.
“There was a particular time I asked our colleagues to call the so-called owner of abokiFX, that we want to understand his model and how he came about advertising those rate, we find him as someone, a Nigerian who lives in England and conducts this nefarious activity on our economy.
“It is economic sabotage and we will pursue him, wherever he is, we will report him to international security agencies, we will track him, Mr Oniwinde, we will find you, because we cannot allow you to continue to conduct an illegal activity that kills our economy.” Emefiele said.
The governor further stated that the website was set up primarily manipulate and speculate forex rates. He said “they get naira loans, use to purchase dollars, take a position, change the rate over a given period, sell the dollars they purchased and make a profit, this is completely illegal, unacceptable and we will pursue them.”
On Friday, the last time Abokifx published unregulated forex rates, Naira was qouted at N570 to a United States Dollar while the British Pound and the Euro were quoted at N770 and N655, respectively.
U.S Dollar Jumps to Three Weeks High on Better Than Expected Retail Sales
The United States Dollar rose to a three-week high after data from the Commerce Department showed that the U.S retail sales rebounded in the month of August despite falling consumer confidence.
The US Dollar Index rose to 93.40 on Monday to extend Friday breakout above the 93.00 key resistance level.
U.S retail sales jumped to its highest in five months in the month of August to beat 0.8 percent decline predicted by experts. Retail sales grew by 0.7 percent in August to increase the odds of the US Federal Reserve announcing tapering during next week’s Federal Open Market Committee (FOMC) meeting.
“U.S. consumption is not slowing as quickly as it appeared a month ago despite the fading stimulus, and the Delta variant did not much affect the industries feeding into retail sales,” said Chris Low, chief economist at FHN Financial in New York. “The economy continued to hum in August.”
Against the Japanese Yen, the U.S dollar strengthened to 109.48 from 109.91 attained on Friday on broad-based selloff during London trading session, while heavy selloff plunged British pound against the U.S dollar 1.36610 before reboundling slightly to 1.36946.
The Euro dropped from 1.17883 recorded on Friday to 1.16995 on Monday during London trading session.
Naira Exchange Rates Today, Friday, September 17, 2021
Naira continued its downward trend against other currencies on Friday as it plunged to N570 against the United States Dollar at the black market. The local currency traded at N770 and N655 to British Pound and Euro, respectively.
Persistent forex scarcity amid a series of in effective policies have made access to forex impossible for most of businesses that operates in largely import dependent African biggest economy.
Nigeria’s forex reserves, the means in which the nation, service its dollar consuming 200 million population has been on a decline in recent weeks despite crude oil trading at over a year high of $73 a barrel. Some of the factors that have crippled the ability of central bank to cushion the economy with enough forex is low crude oil production, partly due to production cap, weak local manufacturing sector that has made the nation a huge import dependent economy, the ongoing crisis between herders and farmers, rising costs even with falling inflation, etc.
At the bureau de change section, Naira exchanged at N565, N775 and N655 to a United States Dollar, British Pound and Euro common currency.
The Central Bank of Nigeria (CBN) had stopped the sale of forex to the bureau de change operators to plug forex leakages and curb activities of criminal elements, the decision has worsen forex availability. See other forex rates below.
Naira Black Market Exchange Rates
Morning * Midday** Evening *** Final Rates
Bureau De Change Naira Rates
Central Bank of Nigeria’s Official Naira Rates
|9/16/2021||SOUTH AFRICAN RAND||28.3101||28.3446||28.3792|
N.B: These tables are updated three times a day.
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