Bank chiefs to partner CBN to resolve forex crisis

Bank chief executive officers have promised to collaborate with the Central Bank of Nigeria (CBN) with a view to addressing the issues that resulted in the barring of some banks from participating in foreign exchange transactions.

CBN, on Tuesday, barred nine deposit money banks from participating in foreign exchange transaction for not remitting $2.1bn belonging to the Nigeria National Petroleum Corporation (NNPC) into the Treasury Single Account according to the directive of the federal government.

The bank chiefs, who met on Thursday on the platform of the Body of Bank Chief Executive Officers, promised to intervene in the matter “in a manner that will protect the stability of the industry, as well as to ensure proper conduct in the optimisation of the foreign exchange market.”

According to a statement signed by Seye Awojobi, Registrar/CEO, Chartered Institute of Bankers of Nigeria (CIBN), the body, which was formed under the auspices of the CIBN and comprising of the key operators in the banking industry, stressed that “as professionals who understand what is at stake, it would work towards ensuring that the concerned banks comply with the directive of the apex bank as soon as possible to avoid negative impact on the economy.”

The statement added the bank CEOs clarified that there was no concealment of the exposure in any form as the banks had always disclosed the fund in their returns, noting that the situation arose out of the maturity mismatch of funds found in certain strategic sectors.

to ensure the growth of the economy.

The meeting also stressed that there was no crisis in the banking industry “as it is strong and stable.”

The bank chiefs stressed their resolve to continue to collaborate with the CBN and other stakeholders to forestall this and other issues that might impact on the growth of the banking industry.