CBN directs banks not to refuse any FX request with proper document, to sanction defaulters

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The Central Bank of Nigeria (CBN) has directed all Deposit Money Banks (DMBs) to ensure that no customer is turned back or refused FX provided that documentation and all other requirements are satisfied.

The apex bank also insisted that DMBs must set up teller points at designated branches across the country to fulfil legitimate FX requests for specific purposes.

Some of the approved requests are Personal Travel Allowance, (PTA), Business Travel Allowance (BTA), tuition fees, medical payments, SMEs transactions, amongst others.

This was disclosed by the apex bank via a memo sent to all DMBs and signed by Haruna Mustafa, Director, Banking Supervision Department, CBN on Wednesday.

According to CBN, undue delays, rationing and/or diversion of FX is strongly discouraged whilst DMBs are required to establish electronic application and alert systems to update customers on the status of their FX requests.

The memo partly read, “DMBs are strongly advised to ensure that no customer is turned back or refused FX 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 application and alert systems to update customers on status of their FX requests.

As communicated during the briefing, a toll-free line has been set up at the CBN for bank customers to escalate unresolved complaints related to their FX requests.

The CBN will continue to closely monitor banks’ conduct and compliance with this directive in order to ensure an efficient FX market for all legitimate users.”

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On Wednesday, July 28, the CBN allegedly allocated a total of $200 million to all commercial banks in the country as part of efforts to meet the foreign exchange demand for legitimate end-users across the country, a move against forex speculation.

The action by the apex bank is coming after it announced the discontinuation of forex sales to Bureau De Change (BDC) operators in the country as reported earlier by Nairametrics.