CBN bars GTB, First Bank, others from FX sales to SMEs

The Central Bank of Nigeria (CBN) yesterday suspended all but eight banks from participating in the weekly Foreign Exchange intervention to the Small and Medium Enterprises (SMEs).

The apex bank said following persistent complaints that some deposit money banks (DMBs) have deliberately frustrated efforts by many SMEs to access forex, the apex bank barred the banks from participating in the weekly SME wholesale spot and forward intervention with effect from Tuesday, May 2, 2017.

Confirming the decision, the CBN Acting Director, Corporate Communications, Isaac Okorafor, said the CBN management decided to bar banks that were yet to utilize any portion of the funds allocated by the CBN under the SME window, since the inception of the window last month, from participating in the weekly wholesale spot and forward interventions.

He listed the banks not barred to include: Access Bank Plc, Diamond Bank Plc, Fidelity Bank, Heritage Bank, Jaiz Bank, Sterling Bank, Unity Bank and Zenith Bank.

Some of the affected banks includes: GTB, First Bank, UBA, Diamond, Stanbic IBTC, Skye Bank, Keystone among other.

He, however, disclosed that the action would be lifted immediately the affected banks show evidence of significant utilization of the fund allocated to them under the SME window.

As an incentive, Okorafor said banks that had utilized their SME funds were allocated all of the $100 million sold at the Tuesday’s wholesale auction.