Central Bank of Nigeria (CBN) has directed all Depositors Money Bank (DMBs) operating in the country to create an electronic application and alert system aimed to inform customers on the status of their foreign exchange (FX) requests as it also warned them against diversion of forex.
This directive was given by the apex bank in a circular dated Wednesday, July 28, 2021, and signed by Mr Haruna Mustafa, director of Banking Supervision Department.
This followed the decision of the CBN to stop the sales of forex to Bureaux De Change (BDC) operators because of currency speculations and the supply of FX to banks to meet the demands of end-users.
At the Monetary Policy Committee (MPC) meeting held earlier this week, the apex bank directed commercial banks to create a teller point for the purpose of fulfilling FX requests of customers.
In order to track the process and allow FX users to monitor the progress of their requests, the central bank said DMBs must design an app to be accessible by the parties.
“DMBs are required to establish electronic application and alert systems to update customers on the status of their FX requests,” a part of the circular to the banks read.
The CBN also warned DMBs to attend to the FX needs of their customers, warning them not to refuse to sell forex to end-users as long as “documentation and all other requirements are satisfied,” stressing that “undue delays, rationing and/or diversion of FX is strongly discouraged.”
The central noted that DMBs are “to fulfil the legitimate FX requests for Personal Travel Allowance (PTA), Business Travel Allowance (BTA), tuition fees, medical payments, SMEs transactions, amongst others.”
It further stated that DMBs must “adequately publicise 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.”
The apex bank advised aggrieved customers to dial its toll-free line to escalate any issue “related to FX requests,” assuring that it would continue to monitor the conduct and compliance of banks to this directive, emphasising that any breach would be “severely sanctioned.”
