- NEC asks CBN to review forex policy
The Central Bank of Nigeria (CBN) yesterday said it does not directly allocate foreign exchange (forex) to bank customers. Forex transactions occur between banks and their customers, the apex bank added.
Special Adviser to the CBN Governor on Financial Markets Emmanuel Ukeje stated this on a television programme while responding to allegations that the regulator was in breach of its foreign exchange administration policy.
He explained: “I want to state categorically that the CBN does not deal directly with any bank customer on any foreign exchange transaction. These transactions are purely between the deposit money banks and their customers.”
Ukeje was responding to a question that the CBN had been queried by Attorney General of the Federation and Minister of Justice Abubakar Malami (SAN) over its management of the foreign exchange policy.
Ukeje denied there was such a query from any quarters, stating that “neither the CBN Governor nor any department of the CBN received any communication from the Minister of Justice.
“But be that as it may, and for the avoidance of doubt, I want to say it is not out of place for any agency of government to seek clarifications on any information from other agencies of government. The CBN, however, as a responsive and responsible institution, will always provide such clarifications for the purpose of educating and enlightening all concerned.”
He said any rate disparity on forex transactions should not be blamed on the CBN because the figures are from transactions between the banks and their customers.
The apex bank has consistently ensured that banks are transparent in their forex dealings with customers.
He said the CBN publishes reports of purchases and sales of foreign exchange between deposit money banks and their customers as submitted by the lenders without editing the reports, adding that the practice of publishing the reports on CBN’s website started since last October.
He said the CBN had directed banks to render their forex transaction reports uniformly on a naira-dollar format. He said the banks source forex from other sources which could lead to selling at different rates.
In the meantime, the National Economic Council (NEC) on Thursday called on the Central Bank of Nigeria to embark on urgent review of the current foreign exchange policy.
The council also resolved to inject fresh $250m into the Sovereign Wealth Fund.
The decisions were taken at the council’s first meeting of the year presided over by Acting President Yemi Osinbajo at the Presidential Villa, Abuja
Rivers State Deputy Governor, Ipalibo Banigo; Nassarawa State Deputy Governor, Silas Ali Agara; Minister of Finance, Kemi Adeosun; and the Minister of Agriculture, Audu Ogbeh, briefed State House correspondents at the end of the meeting.
The NEC which has all state governors as members is chaired by Osinbajo.
Agara said after an extensive discussion on the foreign exchange policy, the CBN Governor, Godwin Emefiele, called on council members to be patient as the situation is being managed.
“After a brief presentation on forex policy options by the CBN Governor, council members generally expressed concern over the current situation of the exchange rate and called for an urgent review of the current Forex Policy, especially the gap between interbank and the parallel market rates.
“The CBN Governor sued for patience and understanding, assuring that the situation is being closely managed,” the deputy governor said.
Adeosun said she reported to the council that a member each from the nation’s six geo-political zones had been nominated into the board of the Nigeria Sovereign Investment Authority.
She listed the nominees as North-East -Halima Buba ( Non-Executive Director); North West – Bello Maccido (Non-Executive Director); North Central – Lois Laraba Machunga-Disu (Non-Executive Director); South West – Babajide Zetilin (Non-Executive Director); South East – Urum Kalu Eze (Non-Executive Director); and South-South – Abue Ighodalo.
The minister said council members unanimously adopted the nominations for onward consideration by President Muhammadu Buhari for his final approval.
Nation with additional report from Ships & Ports
