Reports from Thisday Newspaper suggest that the Central Bank of Nigeria has banned 9 commercial banks from the foreign exchange market for “breaking TSA rules.”
They explained that banks were banned from the exchange rate market for “concealing and failing to remit the NNPC dollar funds to the FG TSA account domiciled with the CBN…”
They named the following banks:
The banks, whose suspension would remain in force until they remit all the funds to the TSA are United Bank for Africa (UBA) $530m; First Bank of Nigeria (FBN) $469m; Diamond Bank Plc ($287m); Sterling Bank Plc ($269m); Skye Bank Plc ($221m) Keystone Bank ($139); First City Monument Bank (FCMB) $125m; and Heritage Bank ($85m) and Fidelity Bank…
What we however don’t understand is the relationship between the TSA and the foreign exchange rate market?
Just yesterday, the CBN mandated banks to sell about 60% of their forex allocation to Manufacturing firms. BDCs also complained that some banks were not selling forex to them in breach of the CBN directive instructing banks not foreign remmitances.
Thisday also reports that “further disciplinary action” will be meted out these banks.
More to follow…
