By Henry Oduah
Reporter
First Bank has been made sole dealer in the sale of foreign exchange (forex) to licensed bureau de change (BDC) operators.
The bank is reaping from compliance with Central Bank of Nigeria (CBN) directive to sell inflow from International Money Transfer Operators (IMTO) to BDCs.
Nineteen banks have been suspended from forex deals for failing to comply, and195 BDCs delisted from the market for failing to renew their licences.
It was learnt that the banks preferred to do short term business with their forex proceeds, instead of selling to BDCs, to cushion the fall of the naira in the parallel market.
The CBN directed agent banks to sell forex proceeds from diaspora remittances to Travelex, an international forex dealer, who will then sell directly to BDCs.
Since Travelex commenced the distribution of $15,000 weekly to BDCs from diaspora remittances, the naira has gained steadily against the dollar with a fall from N500 to about N465 in the parallel market.
First Bank disclosed that it has consistently sold dollars to over 500 licensed BDCs as directed by the CBN to improve dollar liquidity and strengthen the naira in line with the new flexible forex policy.
It said the CBN’s pronouncement attests to its strong financial base and support for the growth of the economy.
The bank will maintain its position as the safest and most respected banking franchise in the country, its Chief Financial Officer, Patrick Iyamabo, said.
