Forex Trading (CBN)The Central Bank of Nigeria (CBN) will no longer hold daily auction of foreign exchange to banks. This was disclosed by Emmanuael Ukeje, director, financial market, CBN. “We will not sell (dollars) on a daily basis any more. Whenever we do the auction everybody bids,” Ukeje said.

The implication is that banks are now to source for forex by themselves without relying on the CBN. According to Ukeje, banks are now responsible to their customers as they accept their foreign currency deposits, warning that banks cannot come to CBN to ask for dollars to settle their obligations, hence the need for them to manage their dollar resources effectively.

He said: “If a customer gives a bank dollars and wants the bank to transfer them, inadvertently, what the person has done earlier is to let the bank hold that money on the person’s behalf and to bring it out when the person demands it.

“Banks that issue the naira and dollar cards take responsibility now. They must make sure that they have enough of the denomination to back up your demand. This is different from before, when they commit and run to CBN because it would immediately become a national issue.”

By Dike Onwuamaeze

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