* Groups hail CBN’s intervention
In compliance with the new Foreign Exchange (FX) regulation by the Central Bank of Nigeria (CBN), commercial banks in Abuja have set up dedicated teller points for FX transactions in their branches.
The CBN had last week stopped sales of FX through Bureau de Change operators and announced that foreign exchange would now be sold through commercial banks.
Random checks conducted on Monday showed that banks were complying with the new directive.
Checks at Fidelity Bank, Keystone Bank and Zenith Bank, all in the Central Area of Abuja, showed that they all had designated teller points for FX transactions.
At all the banks visited, officials said that the dollar was selling at an official rate of N412.
They said each traveller was entitled to buy $4000 per quarter for personal travels and 5000 dollar per quarter for business travels.
Speaking after the Monetary Policy Committee (MPC) meeting last Tuesday in Abuja, CBN Governor, Mr. Godwin Emefiele, said the ban became necessary to stop the use of the parallel market as conduit for illicit forex flows and graft.
He accused the BDCs of going beyond their mandate of selling $5000 per day, and abusing the forex sector.
After the announcement, the apex bank directed commercial banks to immediately set up teller points in designated branches for the sale of forex.
The apex bank further advised commercial banks to ensure that no customer is turned back or refused forex, provided that documentation and all other requirements were satisfied.
The dollar had increased to N505 from N504 at the black market immediately after the CBN directive.
Meanwhile, a group of lawyers and Non-Governmental Organizations (NGOs) under the aegis of Lawyers In Defence of Economic Rights (LIDER) have praised the decision by the CBN to place an embargo on the weekly supply of forex to Bureau de Change (BDCs) in the country.
The group described the decision as not only commendable, courageous but also meant to end illicit transactions and corrupt briefcase billionaires.
The organization noted that the apex bank’s commendable decision is a right step in the right direction, towards stopping the act of robbing Peter to pay Paul.
LIDER, which made its position known in a statement by its leader Barrister Chisom Nduka Edede, said the decision was taken to streamline the nation’s forex market and bring sanity to the foreign exchange system.
According to the organisation, the development can also be described as using one stone to kill many birds by tackling corruption, money laundering and terrorism among other societal ills bedeviling the nation.
The organization alleged that most BDC operators are lazy, yet so rich, describing them as billionaires without owning factories or industries but feeding fat on the nation’s forex.
The organisation said: “With this noble decision, Emefiele and his team have fired Bazuka for corruption, money laundering and terrorism.
“This decision is not only commendable but also courageous. It is meant to end illicit transactions and corrupt briefcase billionaires.
“We admit that like any other good policy, this policy can cause temporary discomfort but in the long run, the gains are enormous and will be permanent.
“We urge Nigerians to give the CBN the necessary support and show understanding while Emefiele and his team continue to set the nation’s economy on the path of sustainable growth.”