FX Transactions: CBN To Sanction Banks

The Central Bank of Nigeria (CBN), has vowed to sanction Deposit Money Banks (DMBs) for rejecting old and small denominations of the United States of America Dollars.

This was contained in a circular issued by the Ag. Director of Currency Operations Department of CBN, with reference: COD/DIR/INT/CIR/001/017

The apex bank said its market intelligence had revealed the continued rejection of the affected Dollar notes, which it described as unacceptable.

Osun Defender recalls that Governor of CBN, Olayemi Cardoso, had vowed to pursue an aggressive regulatory environment to reduce infractions in the country’s banking system.

READ: CBN Issues Fresh Directives On Foreign Currency Deposit

He said this in Abuja at the Monetary Policy Committee meeting of the apex bank, the first since he assumed office in September 2023.

He also stated that an in-depth investigation was underway to determine the necessary actions against banks involved in infractions, stressing that the bank was in the process of formulating “stringent regulations” to cleanse and purify the country’s foreign exchange market.

The governor, responding to questions on steps taken to promote trading on the foreign exchange market, also revealed that its foreign reserves increased to $34bn as of February 20, up by $2bn from the $32.23bn recorded at the end of January.