CBN bans importation of foreign currency
Abuja - The Central Bank of Nigeria (CBN) has banned the importation of all foreign currencies except with approval.
This was contained in a statement signed by CBN Director of Corporate Communications, Mr Ugo Okoroafor, on Tuesday in Abuja.
It said that the move was sequel to the Bank’s withdrawal of the operating licence of 20 Bureaux de Change (BDCs).
The
CBN alleged that the BDCs purchased and sold huge sums of U.S. dollars
with no documentation to show details of the transactions.
The
statement quoted the Deputy Governor, Economic Policy, Dr Sarah Alade,
as saying that the CBN frowned at the existence of strong foreign
exchange demand pressure from domestic sources.
She said that the
CBN had observed a surge in dollar cash importation by banks and the
huge cash sales of the dollars to BDCs by the banks.
She disclosed that the purchase and sale of the cash were not adequately documented by the BDCs.
Alade
said that if the trend was not contained, it could pose grave threats
to the value of the naira as well as the Nigerian economy which had
gradually become dollarised.
She said the CBN Governor, Malam
Sanusi Lamido Sanusi, and his team decided to take immediate action to
safeguard the naira and ensure its stability in the face of the
aforementioned challenges.
Meanwhile, the CBN has also announced that the Retail Dutch Auction System (RDAS) would take effect from Oct. 2.
This followed the suspension of the Wholesale Dutch Auction System (WDAS) at the official foreign exchange market.
It said that the RDAS would allow only customers of deposit money banks to buy foreign exchange at the CBN through their banks.
This
is against the WDAS where the deposit money banks bought foreign
exchange at the CBN on their own accounts and in turn sold to their
customers.
“The re-introduction of the RDAS is expected to prevent
round tripping of foreign exchange purchased at the CBN official window
to unauthorised channels.
“Also, a circular has been issued
mandating all deposit money banks to redeem all inward money transfers
in naira to the recipients at the prevailing inter-bank foreign exchange
rate.
“This is in line with best practice,’’ it said.
The
statement said that apex bank would continue to support the operations
of BDCs in line with existing guidelines, adding that BDCs were still
relevant in the foreign exchange market.
“To guard against
stifling the activities of the BDCs, the CBN has authorised all deposit
money banks to deal at the official foreign exchange market rate.
“It also warned that banks can only sell foreign exchange cash to BDCs subject to a maximum of 250,000 dollars per week per BDC.
“The
CBN also advised all BDCs to continue to comply with the conditions of
their operating licences, including the proper rendition of returns with
respect to the purchases and sales of foreign exchange.’’
The
statement said that the apex bank had assured members of the public of
its commitment to maintaining price stability and the preservation of
the value of the naira in accordance with its mandate. (NAN)
- See more at: http://www.vanguardngr.com/2013/10/cbn-bans-importation-foreign-currency/#sthash.sBQC60c7.dpuf
Abuja - The Central Bank of Nigeria (CBN) has banned the importation of all foreign currencies except with approval.
This was contained in a statement signed by CBN Director of Corporate Communications, Mr Ugo Okoroafor, on Tuesday in Abuja.
It said that the move was sequel to the Bank’s withdrawal of the operating licence of 20 Bureaux de Change (BDCs).
The CBN alleged that the BDCs purchased and sold huge sums of U.S. dollars with no documentation to show details of the transactions.
The statement quoted the Deputy Governor, Economic Policy, Dr Sarah Alade, as saying that the CBN frowned at the existence of strong foreign exchange demand pressure from domestic sources.
She said that the CBN had observed a surge in dollar cash importation by banks and the huge cash sales of the dollars to BDCs by the banks.
She disclosed that the purchase and sale of the cash were not adequately documented by the BDCs.
Alade said that if the trend was not contained, it could pose grave threats to the value of the naira as well as the Nigerian economy which had gradually become dollarised.
She said the CBN Governor, Malam Sanusi Lamido Sanusi, and his team decided to take immediate action to safeguard the naira and ensure its stability in the face of the aforementioned challenges.
Meanwhile, the CBN has also announced that the Retail Dutch Auction System (RDAS) would take effect from Oct. 2.
This followed the suspension of the Wholesale Dutch Auction System (WDAS) at the official foreign exchange market.
It said that the RDAS would allow only customers of deposit money banks to buy foreign exchange at the CBN through their banks.
This is against the WDAS where the deposit money banks bought foreign exchange at the CBN on their own accounts and in turn sold to their customers.
“The re-introduction of the RDAS is expected to prevent round tripping of foreign exchange purchased at the CBN official window to unauthorised channels.
“Also, a circular has been issued mandating all deposit money banks to redeem all inward money transfers in naira to the recipients at the prevailing inter-bank foreign exchange rate.
“This is in line with best practice,’’ it said.
The statement said that apex bank would continue to support the operations of BDCs in line with existing guidelines, adding that BDCs were still relevant in the foreign exchange market.
“To guard against stifling the activities of the BDCs, the CBN has authorised all deposit money banks to deal at the official foreign exchange market rate.
“It also warned that banks can only sell foreign exchange cash to BDCs subject to a maximum of 250,000 dollars per week per BDC.
“The CBN also advised all BDCs to continue to comply with the conditions of their operating licences, including the proper rendition of returns with respect to the purchases and sales of foreign exchange.’’
The statement said that the apex bank had assured members of the public of its commitment to maintaining price stability and the preservation of the value of the naira in accordance with its mandate. (NAN)
Abuja - The Central Bank of Nigeria (CBN) has banned the importation of all foreign currencies except with approval.
This was contained in a statement signed by CBN Director of Corporate Communications, Mr Ugo Okoroafor, on Tuesday in Abuja.
It said that the move was sequel to the Bank’s withdrawal of the operating licence of 20 Bureaux de Change (BDCs).
The
CBN alleged that the BDCs purchased and sold huge sums of U.S. dollars
with no documentation to show details of the transactions.
The
statement quoted the Deputy Governor, Economic Policy, Dr Sarah Alade,
as saying that the CBN frowned at the existence of strong foreign
exchange demand pressure from domestic sources.
She said that the
CBN had observed a surge in dollar cash importation by banks and the
huge cash sales of the dollars to BDCs by the banks.
She disclosed that the purchase and sale of the cash were not adequately documented by the BDCs.
Alade
said that if the trend was not contained, it could pose grave threats
to the value of the naira as well as the Nigerian economy which had
gradually become dollarised.
She said the CBN Governor, Malam
Sanusi Lamido Sanusi, and his team decided to take immediate action to
safeguard the naira and ensure its stability in the face of the
aforementioned challenges.
Meanwhile, the CBN has also announced that the Retail Dutch Auction System (RDAS) would take effect from Oct. 2.
This followed the suspension of the Wholesale Dutch Auction System (WDAS) at the official foreign exchange market.
It said that the RDAS would allow only customers of deposit money banks to buy foreign exchange at the CBN through their banks.
This
is against the WDAS where the deposit money banks bought foreign
exchange at the CBN on their own accounts and in turn sold to their
customers.
“The re-introduction of the RDAS is expected to prevent
round tripping of foreign exchange purchased at the CBN official window
to unauthorised channels.
“Also, a circular has been issued
mandating all deposit money banks to redeem all inward money transfers
in naira to the recipients at the prevailing inter-bank foreign exchange
rate.
“This is in line with best practice,’’ it said.
The
statement said that apex bank would continue to support the operations
of BDCs in line with existing guidelines, adding that BDCs were still
relevant in the foreign exchange market.
“To guard against
stifling the activities of the BDCs, the CBN has authorised all deposit
money banks to deal at the official foreign exchange market rate.
“It also warned that banks can only sell foreign exchange cash to BDCs subject to a maximum of 250,000 dollars per week per BDC.
“The
CBN also advised all BDCs to continue to comply with the conditions of
their operating licences, including the proper rendition of returns with
respect to the purchases and sales of foreign exchange.’’
The
statement said that the apex bank had assured members of the public of
its commitment to maintaining price stability and the preservation of
the value of the naira in accordance with its mandate. (NAN)
- See more at: http://www.vanguardngr.com/2013/10/cbn-bans-importation-foreign-currency/#sthash.sBQC60c7.dpuf
Abuja - The Central Bank of Nigeria (CBN) has banned the importation of all foreign currencies except with approval.
This was contained in a statement signed by CBN Director of Corporate Communications, Mr Ugo Okoroafor, on Tuesday in Abuja.
It said that the move was sequel to the Bank’s withdrawal of the operating licence of 20 Bureaux de Change (BDCs).
The
CBN alleged that the BDCs purchased and sold huge sums of U.S. dollars
with no documentation to show details of the transactions.
The
statement quoted the Deputy Governor, Economic Policy, Dr Sarah Alade,
as saying that the CBN frowned at the existence of strong foreign
exchange demand pressure from domestic sources.
She said that the
CBN had observed a surge in dollar cash importation by banks and the
huge cash sales of the dollars to BDCs by the banks.
She disclosed that the purchase and sale of the cash were not adequately documented by the BDCs.
Alade
said that if the trend was not contained, it could pose grave threats
to the value of the naira as well as the Nigerian economy which had
gradually become dollarised.
She said the CBN Governor, Malam
Sanusi Lamido Sanusi, and his team decided to take immediate action to
safeguard the naira and ensure its stability in the face of the
aforementioned challenges.
Meanwhile, the CBN has also announced that the Retail Dutch Auction System (RDAS) would take effect from Oct. 2.
This followed the suspension of the Wholesale Dutch Auction System (WDAS) at the official foreign exchange market.
It said that the RDAS would allow only customers of deposit money banks to buy foreign exchange at the CBN through their banks.
This
is against the WDAS where the deposit money banks bought foreign
exchange at the CBN on their own accounts and in turn sold to their
customers.
“The re-introduction of the RDAS is expected to prevent
round tripping of foreign exchange purchased at the CBN official window
to unauthorised channels.
“Also, a circular has been issued
mandating all deposit money banks to redeem all inward money transfers
in naira to the recipients at the prevailing inter-bank foreign exchange
rate.
“This is in line with best practice,’’ it said.
The
statement said that apex bank would continue to support the operations
of BDCs in line with existing guidelines, adding that BDCs were still
relevant in the foreign exchange market.
“To guard against
stifling the activities of the BDCs, the CBN has authorised all deposit
money banks to deal at the official foreign exchange market rate.
“It also warned that banks can only sell foreign exchange cash to BDCs subject to a maximum of 250,000 dollars per week per BDC.
“The
CBN also advised all BDCs to continue to comply with the conditions of
their operating licences, including the proper rendition of returns with
respect to the purchases and sales of foreign exchange.’’
The
statement said that the apex bank had assured members of the public of
its commitment to maintaining price stability and the preservation of
the value of the naira in accordance with its mandate. (NAN)
- See more at: http://www.vanguardngr.com/2013/10/cbn-bans-importation-foreign-currency/#sthash.sBQC60c7.dpuf
Abuja - The Central Bank of Nigeria (CBN) has banned the importation of all foreign currencies except with approval.
This was contained in a statement signed by CBN Director of Corporate Communications, Mr Ugo Okoroafor, on Tuesday in Abuja.
It said that the move was sequel to the Bank’s withdrawal of the operating licence of 20 Bureaux de Change (BDCs).
The
CBN alleged that the BDCs purchased and sold huge sums of U.S. dollars
with no documentation to show details of the transactions.
The
statement quoted the Deputy Governor, Economic Policy, Dr Sarah Alade,
as saying that the CBN frowned at the existence of strong foreign
exchange demand pressure from domestic sources.
She said that the
CBN had observed a surge in dollar cash importation by banks and the
huge cash sales of the dollars to BDCs by the banks.
She disclosed that the purchase and sale of the cash were not adequately documented by the BDCs.
Alade
said that if the trend was not contained, it could pose grave threats
to the value of the naira as well as the Nigerian economy which had
gradually become dollarised.
She said the CBN Governor, Malam
Sanusi Lamido Sanusi, and his team decided to take immediate action to
safeguard the naira and ensure its stability in the face of the
aforementioned challenges.
Meanwhile, the CBN has also announced that the Retail Dutch Auction System (RDAS) would take effect from Oct. 2.
This followed the suspension of the Wholesale Dutch Auction System (WDAS) at the official foreign exchange market.
It said that the RDAS would allow only customers of deposit money banks to buy foreign exchange at the CBN through their banks.
This
is against the WDAS where the deposit money banks bought foreign
exchange at the CBN on their own accounts and in turn sold to their
customers.
“The re-introduction of the RDAS is expected to prevent
round tripping of foreign exchange purchased at the CBN official window
to unauthorised channels.
“Also, a circular has been issued
mandating all deposit money banks to redeem all inward money transfers
in naira to the recipients at the prevailing inter-bank foreign exchange
rate.
“This is in line with best practice,’’ it said.
The
statement said that apex bank would continue to support the operations
of BDCs in line with existing guidelines, adding that BDCs were still
relevant in the foreign exchange market.
“To guard against
stifling the activities of the BDCs, the CBN has authorised all deposit
money banks to deal at the official foreign exchange market rate.
“It also warned that banks can only sell foreign exchange cash to BDCs subject to a maximum of 250,000 dollars per week per BDC.
“The
CBN also advised all BDCs to continue to comply with the conditions of
their operating licences, including the proper rendition of returns with
respect to the purchases and sales of foreign exchange.’’
The
statement said that the apex bank had assured members of the public of
its commitment to maintaining price stability and the preservation of
the value of the naira in accordance with its mandate. (NAN)
- See more at: http://www.vanguardngr.com/2013/10/cbn-bans-importation-foreign-currency/#sthash.sBQC60c7.dpuf
Abuja - The Central Bank of Nigeria (CBN) has banned the importation of all foreign currencies except with approval.
This was contained in a statement signed by CBN Director of Corporate Communications, Mr Ugo Okoroafor, on Tuesday in Abuja.
It said that the move was sequel to the Bank’s withdrawal of the operating licence of 20 Bureaux de Change (BDCs).
The
CBN alleged that the BDCs purchased and sold huge sums of U.S. dollars
with no documentation to show details of the transactions.
The
statement quoted the Deputy Governor, Economic Policy, Dr Sarah Alade,
as saying that the CBN frowned at the existence of strong foreign
exchange demand pressure from domestic sources.
She said that the
CBN had observed a surge in dollar cash importation by banks and the
huge cash sales of the dollars to BDCs by the banks.
She disclosed that the purchase and sale of the cash were not adequately documented by the BDCs.
Alade
said that if the trend was not contained, it could pose grave threats
to the value of the naira as well as the Nigerian economy which had
gradually become dollarised.
She said the CBN Governor, Malam
Sanusi Lamido Sanusi, and his team decided to take immediate action to
safeguard the naira and ensure its stability in the face of the
aforementioned challenges.
Meanwhile, the CBN has also announced that the Retail Dutch Auction System (RDAS) would take effect from Oct. 2.
This followed the suspension of the Wholesale Dutch Auction System (WDAS) at the official foreign exchange market.
It said that the RDAS would allow only customers of deposit money banks to buy foreign exchange at the CBN through their banks.
This
is against the WDAS where the deposit money banks bought foreign
exchange at the CBN on their own accounts and in turn sold to their
customers.
“The re-introduction of the RDAS is expected to prevent
round tripping of foreign exchange purchased at the CBN official window
to unauthorised channels.
“Also, a circular has been issued
mandating all deposit money banks to redeem all inward money transfers
in naira to the recipients at the prevailing inter-bank foreign exchange
rate.
“This is in line with best practice,’’ it said.
The
statement said that apex bank would continue to support the operations
of BDCs in line with existing guidelines, adding that BDCs were still
relevant in the foreign exchange market.
“To guard against
stifling the activities of the BDCs, the CBN has authorised all deposit
money banks to deal at the official foreign exchange market rate.
“It also warned that banks can only sell foreign exchange cash to BDCs subject to a maximum of 250,000 dollars per week per BDC.
“The
CBN also advised all BDCs to continue to comply with the conditions of
their operating licences, including the proper rendition of returns with
respect to the purchases and sales of foreign exchange.’’
The
statement said that the apex bank had assured members of the public of
its commitment to maintaining price stability and the preservation of
the value of the naira in accordance with its mandate. (NAN)
- See more at: http://www.vanguardngr.com/2013/10/cbn-bans-importation-foreign-currency/#sthash.sBQC60c7.dpuf
Abuja - The Central Bank of Nigeria (CBN) has banned the importation of all foreign currencies except with approval.
This was contained in a statement signed by CBN Director of Corporate Communications, Mr Ugo Okoroafor, on Tuesday in Abuja.
It said that the move was sequel to the Bank’s withdrawal of the operating licence of 20 Bureaux de Change (BDCs).
The
CBN alleged that the BDCs purchased and sold huge sums of U.S. dollars
with no documentation to show details of the transactions.
The
statement quoted the Deputy Governor, Economic Policy, Dr Sarah Alade,
as saying that the CBN frowned at the existence of strong foreign
exchange demand pressure from domestic sources.
She said that the
CBN had observed a surge in dollar cash importation by banks and the
huge cash sales of the dollars to BDCs by the banks.
She disclosed that the purchase and sale of the cash were not adequately documented by the BDCs.
Alade
said that if the trend was not contained, it could pose grave threats
to the value of the naira as well as the Nigerian economy which had
gradually become dollarised.
She said the CBN Governor, Malam
Sanusi Lamido Sanusi, and his team decided to take immediate action to
safeguard the naira and ensure its stability in the face of the
aforementioned challenges.
Meanwhile, the CBN has also announced that the Retail Dutch Auction System (RDAS) would take effect from Oct. 2.
This followed the suspension of the Wholesale Dutch Auction System (WDAS) at the official foreign exchange market.
It said that the RDAS would allow only customers of deposit money banks to buy foreign exchange at the CBN through their banks.
This
is against the WDAS where the deposit money banks bought foreign
exchange at the CBN on their own accounts and in turn sold to their
customers.
“The re-introduction of the RDAS is expected to prevent
round tripping of foreign exchange purchased at the CBN official window
to unauthorised channels.
“Also, a circular has been issued
mandating all deposit money banks to redeem all inward money transfers
in naira to the recipients at the prevailing inter-bank foreign exchange
rate.
“This is in line with best practice,’’ it said.
The
statement said that apex bank would continue to support the operations
of BDCs in line with existing guidelines, adding that BDCs were still
relevant in the foreign exchange market.
“To guard against
stifling the activities of the BDCs, the CBN has authorised all deposit
money banks to deal at the official foreign exchange market rate.
“It also warned that banks can only sell foreign exchange cash to BDCs subject to a maximum of 250,000 dollars per week per BDC.
“The
CBN also advised all BDCs to continue to comply with the conditions of
their operating licences, including the proper rendition of returns with
respect to the purchases and sales of foreign exchange.’’
The
statement said that the apex bank had assured members of the public of
its commitment to maintaining price stability and the preservation of
the value of the naira in accordance with its mandate. (NAN)
- See more at: http://www.vanguardngr.com/2013/10/cbn-bans-importation-foreign-currency/#sthash.sBQC60c7.dpuf
Abuja - The Central Bank of Nigeria (CBN) has banned the importation of all foreign currencies except with approval.
This was contained in a statement signed by CBN Director of Corporate Communications, Mr Ugo Okoroafor, on Tuesday in Abuja.
It said that the move was sequel to the Bank’s withdrawal of the operating licence of 20 Bureaux de Change (BDCs).
The
CBN alleged that the BDCs purchased and sold huge sums of U.S. dollars
with no documentation to show details of the transactions.
The
statement quoted the Deputy Governor, Economic Policy, Dr Sarah Alade,
as saying that the CBN frowned at the existence of strong foreign
exchange demand pressure from domestic sources.
She said that the
CBN had observed a surge in dollar cash importation by banks and the
huge cash sales of the dollars to BDCs by the banks.
She disclosed that the purchase and sale of the cash were not adequately documented by the BDCs.
Alade
said that if the trend was not contained, it could pose grave threats
to the value of the naira as well as the Nigerian economy which had
gradually become dollarised.
She said the CBN Governor, Malam
Sanusi Lamido Sanusi, and his team decided to take immediate action to
safeguard the naira and ensure its stability in the face of the
aforementioned challenges.
Meanwhile, the CBN has also announced that the Retail Dutch Auction System (RDAS) would take effect from Oct. 2.
This followed the suspension of the Wholesale Dutch Auction System (WDAS) at the official foreign exchange market.
It said that the RDAS would allow only customers of deposit money banks to buy foreign exchange at the CBN through their banks.
This
is against the WDAS where the deposit money banks bought foreign
exchange at the CBN on their own accounts and in turn sold to their
customers.
“The re-introduction of the RDAS is expected to prevent
round tripping of foreign exchange purchased at the CBN official window
to unauthorised channels.
“Also, a circular has been issued
mandating all deposit money banks to redeem all inward money transfers
in naira to the recipients at the prevailing inter-bank foreign exchange
rate.
“This is in line with best practice,’’ it said.
The
statement said that apex bank would continue to support the operations
of BDCs in line with existing guidelines, adding that BDCs were still
relevant in the foreign exchange market.
“To guard against
stifling the activities of the BDCs, the CBN has authorised all deposit
money banks to deal at the official foreign exchange market rate.
“It also warned that banks can only sell foreign exchange cash to BDCs subject to a maximum of 250,000 dollars per week per BDC.
“The
CBN also advised all BDCs to continue to comply with the conditions of
their operating licences, including the proper rendition of returns with
respect to the purchases and sales of foreign exchange.’’
The
statement said that the apex bank had assured members of the public of
its commitment to maintaining price stability and the preservation of
the value of the naira in accordance with its mandate. (NAN)
- See more at: http://www.vanguardngr.com/2013/10/cbn-bans-importation-foreign-currency/#sthash.sBQC60c7.dpuf
Abuja - The Central Bank of Nigeria (CBN) has banned the importation of all foreign currencies except with approval.
This was contained in a statement signed by CBN Director of Corporate Communications, Mr Ugo Okoroafor, on Tuesday in Abuja.
It said that the move was sequel to the Bank’s withdrawal of the operating licence of 20 Bureaux de Change (BDCs).
The
CBN alleged that the BDCs purchased and sold huge sums of U.S. dollars
with no documentation to show details of the transactions.
The
statement quoted the Deputy Governor, Economic Policy, Dr Sarah Alade,
as saying that the CBN frowned at the existence of strong foreign
exchange demand pressure from domestic sources.
She said that the
CBN had observed a surge in dollar cash importation by banks and the
huge cash sales of the dollars to BDCs by the banks.
She disclosed that the purchase and sale of the cash were not adequately documented by the BDCs.
Alade
said that if the trend was not contained, it could pose grave threats
to the value of the naira as well as the Nigerian economy which had
gradually become dollarised.
She said the CBN Governor, Malam
Sanusi Lamido Sanusi, and his team decided to take immediate action to
safeguard the naira and ensure its stability in the face of the
aforementioned challenges.
Meanwhile, the CBN has also announced that the Retail Dutch Auction System (RDAS) would take effect from Oct. 2.
This followed the suspension of the Wholesale Dutch Auction System (WDAS) at the official foreign exchange market.
It said that the RDAS would allow only customers of deposit money banks to buy foreign exchange at the CBN through their banks.
This
is against the WDAS where the deposit money banks bought foreign
exchange at the CBN on their own accounts and in turn sold to their
customers.
“The re-introduction of the RDAS is expected to prevent
round tripping of foreign exchange purchased at the CBN official window
to unauthorised channels.
“Also, a circular has been issued
mandating all deposit money banks to redeem all inward money transfers
in naira to the recipients at the prevailing inter-bank foreign exchange
rate.
“This is in line with best practice,’’ it said.
The
statement said that apex bank would continue to support the operations
of BDCs in line with existing guidelines, adding that BDCs were still
relevant in the foreign exchange market.
“To guard against
stifling the activities of the BDCs, the CBN has authorised all deposit
money banks to deal at the official foreign exchange market rate.
“It also warned that banks can only sell foreign exchange cash to BDCs subject to a maximum of 250,000 dollars per week per BDC.
“The
CBN also advised all BDCs to continue to comply with the conditions of
their operating licences, including the proper rendition of returns with
respect to the purchases and sales of foreign exchange.’’
The
statement said that the apex bank had assured members of the public of
its commitment to maintaining price stability and the preservation of
the value of the naira in accordance with its mandate. (NAN)
- See more at: http://www.vanguardngr.com/2013/10/cbn-bans-importation-foreign-currency/#sthash.sBQC60c7.dpuf
Abuja - The Central Bank of Nigeria (CBN) has banned the importation of all foreign currencies except with approval.
This was contained in a statement signed by CBN Director of Corporate Communications, Mr Ugo Okoroafor, on Tuesday in Abuja.
It said that the move was sequel to the Bank’s withdrawal of the operating licence of 20 Bureaux de Change (BDCs).
The
CBN alleged that the BDCs purchased and sold huge sums of U.S. dollars
with no documentation to show details of the transactions.
The
statement quoted the Deputy Governor, Economic Policy, Dr Sarah Alade,
as saying that the CBN frowned at the existence of strong foreign
exchange demand pressure from domestic sources.
She said that the
CBN had observed a surge in dollar cash importation by banks and the
huge cash sales of the dollars to BDCs by the banks.
She disclosed that the purchase and sale of the cash were not adequately documented by the BDCs.
Alade
said that if the trend was not contained, it could pose grave threats
to the value of the naira as well as the Nigerian economy which had
gradually become dollarised.
She said the CBN Governor, Malam
Sanusi Lamido Sanusi, and his team decided to take immediate action to
safeguard the naira and ensure its stability in the face of the
aforementioned challenges.
Meanwhile, the CBN has also announced that the Retail Dutch Auction System (RDAS) would take effect from Oct. 2.
This followed the suspension of the Wholesale Dutch Auction System (WDAS) at the official foreign exchange market.
It said that the RDAS would allow only customers of deposit money banks to buy foreign exchange at the CBN through their banks.
This
is against the WDAS where the deposit money banks bought foreign
exchange at the CBN on their own accounts and in turn sold to their
customers.
“The re-introduction of the RDAS is expected to prevent
round tripping of foreign exchange purchased at the CBN official window
to unauthorised channels.
“Also, a circular has been issued
mandating all deposit money banks to redeem all inward money transfers
in naira to the recipients at the prevailing inter-bank foreign exchange
rate.
“This is in line with best practice,’’ it said.
The
statement said that apex bank would continue to support the operations
of BDCs in line with existing guidelines, adding that BDCs were still
relevant in the foreign exchange market.
“To guard against
stifling the activities of the BDCs, the CBN has authorised all deposit
money banks to deal at the official foreign exchange market rate.
“It also warned that banks can only sell foreign exchange cash to BDCs subject to a maximum of 250,000 dollars per week per BDC.
“The
CBN also advised all BDCs to continue to comply with the conditions of
their operating licences, including the proper rendition of returns with
respect to the purchases and sales of foreign exchange.’’
The
statement said that the apex bank had assured members of the public of
its commitment to maintaining price stability and the preservation of
the value of the naira in accordance with its mandate. (NAN)
- See more at: http://www.vanguardngr.com/2013/10/cbn-bans-importation-foreign-currency/#sthash.sBQC60c7.dpuf
Abuja - The Central Bank of Nigeria (CBN) has banned the importation of all foreign currencies except with approval.
This was contained in a statement signed by CBN Director of Corporate Communications, Mr Ugo Okoroafor, on Tuesday in Abuja.
It said that the move was sequel to the Bank’s withdrawal of the operating licence of 20 Bureaux de Change (BDCs).
The
CBN alleged that the BDCs purchased and sold huge sums of U.S. dollars
with no documentation to show details of the transactions.
The
statement quoted the Deputy Governor, Economic Policy, Dr Sarah Alade,
as saying that the CBN frowned at the existence of strong foreign
exchange demand pressure from domestic sources.
She said that the
CBN had observed a surge in dollar cash importation by banks and the
huge cash sales of the dollars to BDCs by the banks.
She disclosed that the purchase and sale of the cash were not adequately documented by the BDCs.
Alade
said that if the trend was not contained, it could pose grave threats
to the value of the naira as well as the Nigerian economy which had
gradually become dollarised.
She said the CBN Governor, Malam
Sanusi Lamido Sanusi, and his team decided to take immediate action to
safeguard the naira and ensure its stability in the face of the
aforementioned challenges.
Meanwhile, the CBN has also announced that the Retail Dutch Auction System (RDAS) would take effect from Oct. 2.
This followed the suspension of the Wholesale Dutch Auction System (WDAS) at the official foreign exchange market.
It said that the RDAS would allow only customers of deposit money banks to buy foreign exchange at the CBN through their banks.
This
is against the WDAS where the deposit money banks bought foreign
exchange at the CBN on their own accounts and in turn sold to their
customers.
“The re-introduction of the RDAS is expected to prevent
round tripping of foreign exchange purchased at the CBN official window
to unauthorised channels.
“Also, a circular has been issued
mandating all deposit money banks to redeem all inward money transfers
in naira to the recipients at the prevailing inter-bank foreign exchange
rate.
“This is in line with best practice,’’ it said.
The
statement said that apex bank would continue to support the operations
of BDCs in line with existing guidelines, adding that BDCs were still
relevant in the foreign exchange market.
“To guard against
stifling the activities of the BDCs, the CBN has authorised all deposit
money banks to deal at the official foreign exchange market rate.
“It also warned that banks can only sell foreign exchange cash to BDCs subject to a maximum of 250,000 dollars per week per BDC.
“The
CBN also advised all BDCs to continue to comply with the conditions of
their operating licences, including the proper rendition of returns with
respect to the purchases and sales of foreign exchange.’’
The
statement said that the apex bank had assured members of the public of
its commitment to maintaining price stability and the preservation of
the value of the naira in accordance with its mandate. (NAN)
- See more at: http://www.vanguardngr.com/2013/10/cbn-bans-importation-foreign-currency/#sthash.sBQC60c7.dpuf
Abuja - The Central Bank of Nigeria (CBN) has banned the importation of all foreign currencies except with approval.
This was contained in a statement signed by CBN Director of Corporate Communications, Mr Ugo Okoroafor, on Tuesday in Abuja.
It said that the move was sequel to the Bank’s withdrawal of the operating licence of 20 Bureaux de Change (BDCs).
The
CBN alleged that the BDCs purchased and sold huge sums of U.S. dollars
with no documentation to show details of the transactions.
The
statement quoted the Deputy Governor, Economic Policy, Dr Sarah Alade,
as saying that the CBN frowned at the existence of strong foreign
exchange demand pressure from domestic sources.
She said that the
CBN had observed a surge in dollar cash importation by banks and the
huge cash sales of the dollars to BDCs by the banks.
She disclosed that the purchase and sale of the cash were not adequately documented by the BDCs.
Alade
said that if the trend was not contained, it could pose grave threats
to the value of the naira as well as the Nigerian economy which had
gradually become dollarised.
She said the CBN Governor, Malam
Sanusi Lamido Sanusi, and his team decided to take immediate action to
safeguard the naira and ensure its stability in the face of the
aforementioned challenges.
Meanwhile, the CBN has also announced that the Retail Dutch Auction System (RDAS) would take effect from Oct. 2.
This followed the suspension of the Wholesale Dutch Auction System (WDAS) at the official foreign exchange market.
It said that the RDAS would allow only customers of deposit money banks to buy foreign exchange at the CBN through their banks.
This
is against the WDAS where the deposit money banks bought foreign
exchange at the CBN on their own accounts and in turn sold to their
customers.
“The re-introduction of the RDAS is expected to prevent
round tripping of foreign exchange purchased at the CBN official window
to unauthorised channels.
“Also, a circular has been issued
mandating all deposit money banks to redeem all inward money transfers
in naira to the recipients at the prevailing inter-bank foreign exchange
rate.
“This is in line with best practice,’’ it said.
The
statement said that apex bank would continue to support the operations
of BDCs in line with existing guidelines, adding that BDCs were still
relevant in the foreign exchange market.
“To guard against
stifling the activities of the BDCs, the CBN has authorised all deposit
money banks to deal at the official foreign exchange market rate.
“It also warned that banks can only sell foreign exchange cash to BDCs subject to a maximum of 250,000 dollars per week per BDC.
“The
CBN also advised all BDCs to continue to comply with the conditions of
their operating licences, including the proper rendition of returns with
respect to the purchases and sales of foreign exchange.’’
The
statement said that the apex bank had assured members of the public of
its commitment to maintaining price stability and the preservation of
the value of the naira in accordance with its mandate. (NAN)
- See more at: http://www.vanguardngr.com/2013/10/cbn-bans-importation-foreign-currency/#sthash.sBQC60c7.dpuf
Abuja - The Central Bank of Nigeria (CBN) has banned the importation of all foreign currencies except with approval.
This was contained in a statement signed by CBN Director of Corporate Communications, Mr Ugo Okoroafor, on Tuesday in Abuja.
It said that the move was sequel to the Bank’s withdrawal of the operating licence of 20 Bureaux de Change (BDCs).
The
CBN alleged that the BDCs purchased and sold huge sums of U.S. dollars
with no documentation to show details of the transactions.
The
statement quoted the Deputy Governor, Economic Policy, Dr Sarah Alade,
as saying that the CBN frowned at the existence of strong foreign
exchange demand pressure from domestic sources.
She said that the
CBN had observed a surge in dollar cash importation by banks and the
huge cash sales of the dollars to BDCs by the banks.
She disclosed that the purchase and sale of the cash were not adequately documented by the BDCs.
Alade
said that if the trend was not contained, it could pose grave threats
to the value of the naira as well as the Nigerian economy which had
gradually become dollarised.
She said the CBN Governor, Malam
Sanusi Lamido Sanusi, and his team decided to take immediate action to
safeguard the naira and ensure its stability in the face of the
aforementioned challenges.
Meanwhile, the CBN has also announced that the Retail Dutch Auction System (RDAS) would take effect from Oct. 2.
This followed the suspension of the Wholesale Dutch Auction System (WDAS) at the official foreign exchange market.
It said that the RDAS would allow only customers of deposit money banks to buy foreign exchange at the CBN through their banks.
This
is against the WDAS where the deposit money banks bought foreign
exchange at the CBN on their own accounts and in turn sold to their
customers.
“The re-introduction of the RDAS is expected to prevent
round tripping of foreign exchange purchased at the CBN official window
to unauthorised channels.
“Also, a circular has been issued
mandating all deposit money banks to redeem all inward money transfers
in naira to the recipients at the prevailing inter-bank foreign exchange
rate.
“This is in line with best practice,’’ it said.
The
statement said that apex bank would continue to support the operations
of BDCs in line with existing guidelines, adding that BDCs were still
relevant in the foreign exchange market.
“To guard against
stifling the activities of the BDCs, the CBN has authorised all deposit
money banks to deal at the official foreign exchange market rate.
“It also warned that banks can only sell foreign exchange cash to BDCs subject to a maximum of 250,000 dollars per week per BDC.
“The
CBN also advised all BDCs to continue to comply with the conditions of
their operating licences, including the proper rendition of returns with
respect to the purchases and sales of foreign exchange.’’
The
statement said that the apex bank had assured members of the public of
its commitment to maintaining price stability and the preservation of
the value of the naira in accordance with its mandate. (NAN)
- See more at: http://www.vanguardngr.com/2013/10/cbn-bans-importation-foreign-currency/#sthash.sBQC60c7.dpuf
Abuja - The Central Bank of Nigeria (CBN) has banned the importation of all foreign currencies except with approval.
This was contained in a statement signed by CBN Director of Corporate Communications, Mr Ugo Okoroafor, on Tuesday in Abuja.
It said that the move was sequel to the Bank’s withdrawal of the operating licence of 20 Bureaux de Change (BDCs).
The
CBN alleged that the BDCs purchased and sold huge sums of U.S. dollars
with no documentation to show details of the transactions.
The
statement quoted the Deputy Governor, Economic Policy, Dr Sarah Alade,
as saying that the CBN frowned at the existence of strong foreign
exchange demand pressure from domestic sources.
She said that the
CBN had observed a surge in dollar cash importation by banks and the
huge cash sales of the dollars to BDCs by the banks.
She disclosed that the purchase and sale of the cash were not adequately documented by the BDCs.
Alade
said that if the trend was not contained, it could pose grave threats
to the value of the naira as well as the Nigerian economy which had
gradually become dollarised.
She said the CBN Governor, Malam
Sanusi Lamido Sanusi, and his team decided to take immediate action to
safeguard the naira and ensure its stability in the face of the
aforementioned challenges.
Meanwhile, the CBN has also announced that the Retail Dutch Auction System (RDAS) would take effect from Oct. 2.
This followed the suspension of the Wholesale Dutch Auction System (WDAS) at the official foreign exchange market.
It said that the RDAS would allow only customers of deposit money banks to buy foreign exchange at the CBN through their banks.
This
is against the WDAS where the deposit money banks bought foreign
exchange at the CBN on their own accounts and in turn sold to their
customers.
“The re-introduction of the RDAS is expected to prevent
round tripping of foreign exchange purchased at the CBN official window
to unauthorised channels.
“Also, a circular has been issued
mandating all deposit money banks to redeem all inward money transfers
in naira to the recipients at the prevailing inter-bank foreign exchange
rate.
“This is in line with best practice,’’ it said.
The
statement said that apex bank would continue to support the operations
of BDCs in line with existing guidelines, adding that BDCs were still
relevant in the foreign exchange market.
“To guard against
stifling the activities of the BDCs, the CBN has authorised all deposit
money banks to deal at the official foreign exchange market rate.
“It also warned that banks can only sell foreign exchange cash to BDCs subject to a maximum of 250,000 dollars per week per BDC.
“The
CBN also advised all BDCs to continue to comply with the conditions of
their operating licences, including the proper rendition of returns with
respect to the purchases and sales of foreign exchange.’’
The
statement said that the apex bank had assured members of the public of
its commitment to maintaining price stability and the preservation of
the value of the naira in accordance with its mandate. (NAN)
- See more at: http://www.vanguardngr.com/2013/10/cbn-bans-importation-foreign-currency/#sthash.sBQC60c7.dpuf
CBN bans importation of foreign currency
Abuja - The Central Bank of Nigeria (CBN) has banned the importation of all foreign currencies except with approval.
This was contained in a statement signed by CBN Director of Corporate Communications, Mr Ugo Okoroafor, on Tuesday in Abuja.
It said that the move was sequel to the Bank’s withdrawal of the operating licence of 20 Bureaux de Change (BDCs).
The
CBN alleged that the BDCs purchased and sold huge sums of U.S. dollars
with no documentation to show details of the transactions.
The
statement quoted the Deputy Governor, Economic Policy, Dr Sarah Alade,
as saying that the CBN frowned at the existence of strong foreign
exchange demand pressure from domestic sources.
She said that the
CBN had observed a surge in dollar cash importation by banks and the
huge cash sales of the dollars to BDCs by the banks.
She disclosed that the purchase and sale of the cash were not adequately documented by the BDCs.
Alade
said that if the trend was not contained, it could pose grave threats
to the value of the naira as well as the Nigerian economy which had
gradually become dollarised.
She said the CBN Governor, Malam
Sanusi Lamido Sanusi, and his team decided to take immediate action to
safeguard the naira and ensure its stability in the face of the
aforementioned challenges.
Meanwhile, the CBN has also announced that the Retail Dutch Auction System (RDAS) would take effect from Oct. 2.
This followed the suspension of the Wholesale Dutch Auction System (WDAS) at the official foreign exchange market.
It said that the RDAS would allow only customers of deposit money banks to buy foreign exchange at the CBN through their banks.
This
is against the WDAS where the deposit money banks bought foreign
exchange at the CBN on their own accounts and in turn sold to their
customers.
“The re-introduction of the RDAS is expected to prevent
round tripping of foreign exchange purchased at the CBN official window
to unauthorised channels.
“Also, a circular has been issued
mandating all deposit money banks to redeem all inward money transfers
in naira to the recipients at the prevailing inter-bank foreign exchange
rate.
“This is in line with best practice,’’ it said.
The
statement said that apex bank would continue to support the operations
of BDCs in line with existing guidelines, adding that BDCs were still
relevant in the foreign exchange market.
“To guard against
stifling the activities of the BDCs, the CBN has authorised all deposit
money banks to deal at the official foreign exchange market rate.
“It also warned that banks can only sell foreign exchange cash to BDCs subject to a maximum of 250,000 dollars per week per BDC.
“The
CBN also advised all BDCs to continue to comply with the conditions of
their operating licences, including the proper rendition of returns with
respect to the purchases and sales of foreign exchange.’’
The
statement said that the apex bank had assured members of the public of
its commitment to maintaining price stability and the preservation of
the value of the naira in accordance with its mandate. (NAN)
- See more at: http://www.vanguardngr.com/2013/10/cbn-bans-importation-foreign-currency/#sthash.sBQC60c7.dpuf
CBN bans importation of foreign currency
Abuja - The Central Bank of Nigeria (CBN) has banned the importation of all foreign currencies except with approval.
This was contained in a statement signed by CBN Director of Corporate Communications, Mr Ugo Okoroafor, on Tuesday in Abuja.
It said that the move was sequel to the Bank’s withdrawal of the operating licence of 20 Bureaux de Change (BDCs).
The
CBN alleged that the BDCs purchased and sold huge sums of U.S. dollars
with no documentation to show details of the transactions.
The
statement quoted the Deputy Governor, Economic Policy, Dr Sarah Alade,
as saying that the CBN frowned at the existence of strong foreign
exchange demand pressure from domestic sources.
She said that the
CBN had observed a surge in dollar cash importation by banks and the
huge cash sales of the dollars to BDCs by the banks.
She disclosed that the purchase and sale of the cash were not adequately documented by the BDCs.
Alade
said that if the trend was not contained, it could pose grave threats
to the value of the naira as well as the Nigerian economy which had
gradually become dollarised.
She said the CBN Governor, Malam
Sanusi Lamido Sanusi, and his team decided to take immediate action to
safeguard the naira and ensure its stability in the face of the
aforementioned challenges.
Meanwhile, the CBN has also announced that the Retail Dutch Auction System (RDAS) would take effect from Oct. 2.
This followed the suspension of the Wholesale Dutch Auction System (WDAS) at the official foreign exchange market.
It said that the RDAS would allow only customers of deposit money banks to buy foreign exchange at the CBN through their banks.
This
is against the WDAS where the deposit money banks bought foreign
exchange at the CBN on their own accounts and in turn sold to their
customers.
“The re-introduction of the RDAS is expected to prevent
round tripping of foreign exchange purchased at the CBN official window
to unauthorised channels.
“Also, a circular has been issued
mandating all deposit money banks to redeem all inward money transfers
in naira to the recipients at the prevailing inter-bank foreign exchange
rate.
“This is in line with best practice,’’ it said.
The
statement said that apex bank would continue to support the operations
of BDCs in line with existing guidelines, adding that BDCs were still
relevant in the foreign exchange market.
“To guard against
stifling the activities of the BDCs, the CBN has authorised all deposit
money banks to deal at the official foreign exchange market rate.
“It also warned that banks can only sell foreign exchange cash to BDCs subject to a maximum of 250,000 dollars per week per BDC.
“The
CBN also advised all BDCs to continue to comply with the conditions of
their operating licences, including the proper rendition of returns with
respect to the purchases and sales of foreign exchange.’’
The
statement said that the apex bank had assured members of the public of
its commitment to maintaining price stability and the preservation of
the value of the naira in accordance with its mandate. (NAN)
- See more at: http://www.vanguardngr.com/2013/10/cbn-bans-importation-foreign-currency/#sthash.sBQC60c7.dpuf
CBN bans importation of foreign currency
Abuja - The Central Bank of Nigeria (CBN) has banned the importation of all foreign currencies except with approval.
This was contained in a statement signed by CBN Director of Corporate Communications, Mr Ugo Okoroafor, on Tuesday in Abuja.
It said that the move was sequel to the Bank’s withdrawal of the operating licence of 20 Bureaux de Change (BDCs).
The
CBN alleged that the BDCs purchased and sold huge sums of U.S. dollars
with no documentation to show details of the transactions.
The
statement quoted the Deputy Governor, Economic Policy, Dr Sarah Alade,
as saying that the CBN frowned at the existence of strong foreign
exchange demand pressure from domestic sources.
She said that the
CBN had observed a surge in dollar cash importation by banks and the
huge cash sales of the dollars to BDCs by the banks.
She disclosed that the purchase and sale of the cash were not adequately documented by the BDCs.
Alade
said that if the trend was not contained, it could pose grave threats
to the value of the naira as well as the Nigerian economy which had
gradually become dollarised.
She said the CBN Governor, Malam
Sanusi Lamido Sanusi, and his team decided to take immediate action to
safeguard the naira and ensure its stability in the face of the
aforementioned challenges.
Meanwhile, the CBN has also announced that the Retail Dutch Auction System (RDAS) would take effect from Oct. 2.
This followed the suspension of the Wholesale Dutch Auction System (WDAS) at the official foreign exchange market.
It said that the RDAS would allow only customers of deposit money banks to buy foreign exchange at the CBN through their banks.
This
is against the WDAS where the deposit money banks bought foreign
exchange at the CBN on their own accounts and in turn sold to their
customers.
“The re-introduction of the RDAS is expected to prevent
round tripping of foreign exchange purchased at the CBN official window
to unauthorised channels.
“Also, a circular has been issued
mandating all deposit money banks to redeem all inward money transfers
in naira to the recipients at the prevailing inter-bank foreign exchange
rate.
“This is in line with best practice,’’ it said.
The
statement said that apex bank would continue to support the operations
of BDCs in line with existing guidelines, adding that BDCs were still
relevant in the foreign exchange market.
“To guard against
stifling the activities of the BDCs, the CBN has authorised all deposit
money banks to deal at the official foreign exchange market rate.
“It also warned that banks can only sell foreign exchange cash to BDCs subject to a maximum of 250,000 dollars per week per BDC.
“The
CBN also advised all BDCs to continue to comply with the conditions of
their operating licences, including the proper rendition of returns with
respect to the purchases and sales of foreign exchange.’’
The
statement said that the apex bank had assured members of the public of
its commitment to maintaining price stability and the preservation of
the value of the naira in accordance with its mandate. (NAN)
- See more at: http://www.vanguardngr.com/2013/10/cbn-bans-importation-foreign-currency/#sthash.sBQC60c7.dpuf
CBN bans importation of foreign currency
CBN bans importation of foreign currency
CBN bans importation of foreign currency
CBN bans importation of foreign currency
CBN bans importation of foreign currency
CBN bans importation of foreign currency
CBN bans importation of foreign currency
“As President of the country, he has the onerous task of restoring normalcy to the sector whether the issues are political as he has made the nation to believe or whether they are purely industrial. The threat of a total shut-down is present and immediate and deserves all the urgency and mobilization Mr President could muster. The developments in the Education sector are symptomatic of greater ills in the polity.”
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