CBN Orders Unutilised FX Returned SMIS Wholesale, Retail Interventions

July 4, 2017 By InvestAdvocate

Lagos (INVESTADVOCATE)-The Central Bank of Nigeria (CBN) on Monday directed that all unutilised forex exchange (FX) be returned to it for the Wholesale Secondary Market Intervention Sales (SMIS) and retail interventions, according to a circular dated June 23, 2017 and  signed by Dipo Fatokun, director, Banking and Payments System Department.

“The Central Bank of Nigeria has noted the incessant complaints from Deposit Money Banks (DMBs) over the delay in getting Naira value for unutilised portion of FX repatriated to CBN,” the circular read.

According to the CBN, in order to ameliorate the current challenges in returning Naira to DMBs for unutilised FX and to improve on the current settlement processes, DMBs are hereby required to batch all unutilized FX returned to CBN per  session/auction with effect from  26 June,  2017. “In other words, where  FX was  purchased  from CBN  for  a  particular  session,  all  unutilised  portion  of  the  session  should     be batched and forwarded to the CBN for settlement, on a weekly basis,” the CBN said.

The CBN also said, all inflows from the proceed of International Money Transfer Operators (IMTO) should be batched and forwarded to CBN for settlement on a weekly basis.

“All authorised dealers are hereby directed to comply accordingly,” the CBN affirmed.