Is inter bank lending of forex allowed in nigeria

Is inter bank lending of forex allowed in nigeria

25/08/ · The Central Bank of Nigeria (CBN) has suspended nine banks in the country from the inter-bank foreign exchange market due to a failure to remit government income to Author: Yomi Kazeem 07/06/ · The Central Bank of Nigeria (CBN) has threatened to suspend the foreign exchange (FX) licence of any bank found to have been involved in forex malpractices. The central bank issued this threat in a circular dated Friday, September 10, , and signed by its Director of Trade and Exchange Department, Dr O.S. blogger.comted Reading Time: 10 mins It is not illegal, but we have seen bodies like the Association of Online Forex Trading Agents, an assemblage of online forex brokerage firms in Nigeria, engaging government to design a working regulatory framework for the business. This will be a big confidence boost for local forex traders. Such activities are already yielding results

Nigerian Inter-Bank Forex Market Gets CBN Boost

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While government agencies and ministries previously maintained multiple accounts at local banks, president Buhari instituted a Treasury Single Account TSA to ensure that all government funds were pooled. This was to instill more accountability in monitoring government revenue and to eliminate opacity in government. In addition to the ban, the affected banks may also be fined.

But the banks have blamed the inability to remit the funds on the scarcity of dollars in Nigeria for most of the past year. That scarcity has remained despite a recent full currency float. In a bid to avoid a sharp currency slide following the drop in oil prices and its revenues, the government chose to adopt a fixed exchange rate but with the problem of the supply of foreign exchange unsolved, increased demand drove up the the value of the currency on the parallel market. Despite calls for devaluation, the central bank, towing the official position of the presidencymaintained the policy.

Rather than result in growth, as promised, the policy scared off investors, resulted in major fuel shortages and adversely impacted the economy. The full float has not assuaged the situation either as it is yet to result in tangible growth and inflow of investment. Late on Wednesday CBN said United Bank of Africa had refunded money owed to the treasury account and would be readmitted to the forex trading market the next day Aug. By providing your email, you agree to the Quartz Privacy Policy.

Skip to navigation Skip to content. These are some of our is inter bank lending of forex allowed in nigeria ambitious editorial projects. From our Obsession. By Yomi Kazeem Africa reporter, is inter bank lending of forex allowed in nigeria.

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Nigeria’s fixed income and forex market review

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Here’s why Nigeria's central bank is banning forex sales to money changers | TechCabal

18/05/ · Forex: CBN bars erring banks from SME Wholesale Forex window effect May 2, PMI Reading No A Surge With Forex To Thank. Naira set to appreciate further as CBN plans more injection into inter-bank market. Forex: Dealers pick $m out of $m offered by CBN. Forex Market Analysis: NZD and USD at Support Area 19/07/ · ABUJA (Reuters) - Nigerian banks plan to reduce the amount customers can spend abroad using debit cards on Monday, two lenders said, as Estimated Reading Time: 2 mins 17/06/ · Proceeds of FX brought into Nigeria (such as foreign investment inflows and international money transfers) shall be purchased by authorised dealers at the daily interbank rates. Non-oil exporters are now allowed unfettered access to export proceeds through the interbank FX blogger.comted Reading Time: 4 mins