CBN Ban of 9 Banks - what you should know.

Discussion in 'General Forum' started by izu, Aug 26, 2016.

  1. Izu

    Izu Admin Staff Member

    If your are a customer of any of the banks banned by CBN from participation in FX operations, you may need to know the following.
    1. Your bank cannot within the period buy foreign exchange from CBN or from Interbank Foreign Exchange Market on your behalf.
    2. The affected banks cannot open Letter of Credits or consummate Bills for Collections for importation of goods on your behalf.
    3. You may have to work with your bank to transfer an ongoing or yet to be completed LC of Bills for Collection process to another bank.
    Unaffected banks usually show understanding and relate with each other in this regards as each usually needs another's favours on a continuous basis.
    Please note that the ban has NOT affected and will NOT IMPACT on the following FX transactions your affected banks can do for you:
    1. The affected banks shall continue to receive foreign currency inflows into your Domiciliary Accounts from your counter parties abroad.
    2. Transfers of funds from your Domiciliary Account to your suppliers or counter parties abroad are not affected.
    3. You can still deposit dollars in the affected banks and still transfer same abroad.
    3. Deposits and withdrawals of any foreign currency into and out of your Domiciliary Accounts are still allowed in your bank.

    Most importantly, note that the affected banks have engaged CBN towards arriving at an early amicable solution to the problem.
    Further note that the ban has not reduced the capacity of your bank to render other non-import related services.

    By Anayo Nwosu.
     

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