Buy at N410, then sell at N460 or above. Banks are Profiting from Nigerians in the Foreign Exchange Market -GCFRNG

Buy at N410, then sell at N460 or above. Banks are Profiting from Nigerians in the Foreign Exchange Market -GCFRNG

In July, the Central Bank of Nigeria halted the sale of dollars to Bureau de Change operators in an attempt to ensure that the Naira exchange can be managed well Investor and exporter data shows the official market in which the currency Nigeria is pegged, it closed Thursday at $ 414.07 / $ 1

However, banks are selling above $ 460 / $, which experts describe as outrageous with a call for bank clients to inform the Department of Banking Supervision of the CBN.

The cost of buying dollars from Nigerian banks has risen in recent days, according to the BusinessDay report. The report citing multiple clients reveals that it now costs 45.15 percent more to change dollars through official banking channels. One of the clients cited in the report said he made a dollar transaction on his Globus account last month. passed and you were charged more than N601 per dollar.

Then yesterday (last Friday) I tried again and they charged me N595.08 per dollar. There is no message to let you know what the fee will be charged, “the customer said. This means that the bank charged an average cost of N598.04k per dollar, as opposed to the N412 that banks are required to charge after buy from the Central Bank of Nigeria (CBN) for N410 per dollar. Other rates cited in the report include Access Bank N450 per dollar as of October 13, 2021, UBA rate at (N465 / $), Ecobank (N450 / $), Wema Bank (N461 / $) and FCMB (N480 / $). Sterling Bank (N460 / $), Standard Chartered Bank (N463 / $).

Only the Union Bank rate that the bank noted was unchanged at N412 / $. Bank CEO Promises Following the suspension of dollar sales by the CBN to Bureau De Change (BDC) operators in July 2021, the Bank’s Chief Executive Officer (CEO) predicted that the exchange rate naira-dollar, which fell to a low of N527 / $ per dollar in the same month, would rebound to at least N423 per dollar, but this has not happened.

, the chief executives of the banks stated that they have the infrastructure and the capacity to serve the legal demand for foreign exchange of the banks. final consumers. Business Travel Allowance (BTA), Personal Travel Allowance (PTA), Education Tuition, and Medical Expenses are examples of valid claims. According to Agbaje, group CEO of GTCO plc, he said. “Different banks are going to have different processes because you will have to look at your controls, you will have to see what works for you. There are a lot of abuses around currency exchange, so we might find that to better control this, you may want to decentralize or centralize or a combination of the two.

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