BREAKING: Reps Uncovers Five Banks Withholding $5bn Forex - 247Updates
Connect with us

Politics

BREAKING: Reps uncovers five banks withholding $5bn forex

Published

on

The House of Representatives on Wednesday uncovered five banks withholding five billion dollars in forex.…CONTINUE READING

Worried by the instability in the foreign exchange market in the country, the House mandated the joint Committees on Banking Regulations and Banking Institutions to conduct an investigative hearing into the non-compliance by banks and financial institutions with CBN directives on the Net Open Position Limits.

The resolution was passed following the adoption of a motion on a Matter of Urgent National Importance regarding the need for banks to implement CBN’s policies on holding excess long foreign exchange and net open position limits, sponsored by Chairman of the House Committee on Defence, Hon. Babajimi Benson.

In his lead debate, Hon. Benson, who observed that the apex bank is tasked with regulating the monetary policies of the country as provided for by the CBN Act, frowned upon the blatant disregard for extant financial regulations.

According to him, “Records show that GTB, Zenith Bank, UBA, and First Bank have a cumulative excess holding of over $5 billion as of January 2024. The only fully compliant bank is Stanbic IBTC, which has made all FX in its reserve available to their clients.

Advertisement

“It is important to note that these banks often obtain foreign exchange either through purchase, borrowing, or allocation from the CBN at the official rate of N461.5 to a dollar for their various customers but hoard them as part of their bank balances or reserves. They eventually sell at higher rates to make extra profit.

“It is this speculative practice that has prompted the CBN to issue a fresh directive centered around the Net Open Position (NOP) for all commercial banks. Simply put, the NOP measures the difference between a bank’s foreign currency assets (what it owns) and foreign currency liabilities (what it owes). Investigations have shown that banks hold far more forex than they require, thereby creating artificial scarcity and an increase in the exchange rate.

“The new CBN directive will help limit how much foreign exchange banks can hold and for how long. The aim is to discourage hoarding of forex, thereby making it available for intended users at reasonable rates.

“Despite measures adopted by CBN in the past and based on previous experiences with CBN policies directives, many banks are in default of its implementation. This explains why eight banks currently hold a huge NOP of over $6 billion while there is a biting scarcity. This motion will provide the legislative impetus for the required action to compel them to fully comply with the directive.”

Advertisement

Hon. Benson observed that Section 8 (4) and (5) of the CBN Act require that the CBN Governor is expected to brief the relevant Committees of the National Assembly during the semi-annual hearings as well as provide periodic reports on the performance of the economy to the National Assembly.

While frowning upon the non-compliance to the extant law, Hon. Benson lamented that: “there has been a steady rise in the rate of the dollar in comparison to the naira. It rose to N1,520 to the dollar last week.

“The House is also concerned that this astronomical rise has been caused by diverse market forces and certain economic policies adopted by the government, including the liberalization of the dollar.

“The House is further concerned, however, that commercial banks and certain financial institutions in Nigeria usually hold back a large part of forex they obtain either through purchase, borrowing, or allocation from the CBN rather than lending to their customers with a view to selling it when the exchange rate is high.

Advertisement

“The House is worried that this speculative activity by commercial banks and certain financial institutions has further exacerbated the harsh economic situation in the country and led to difficulty by legitimate businesses to obtain forex for their business transactions.

“The House is aware that the CBN has intervened by introducing new monetary policies to check the rise in the rate of the dollar, among which are the Net Open Position Limits and holding excess long foreign exchange.

“The House is also aware that commercial banks and certain financial institutions are reluctant to implement the monetary measures put in place by the apex bank to check these unwholesome practices by banks and other financial institutions in the country.

“The House is concerned that unless drastic legislative measures are taken to enforce the implementation of these directives, the country will continue to experience dire economic hardship as a result of the continuous rise in foreign exchange rates,” he warned.

Advertisement

To this end, the House mandated its Committee on Legislative Compliance to ensure full implementation.

PAY ATTENTION: HOW TO MAKE $150 PER DAY WITH THIS SIMPLE TRICK
 
   
 
Continue Reading
Advertisement
Advertisement
Breaking News10 mins ago

KANO: NAF Arrests Kidnapper Who Demanded Over 30m Ransom From Victims

Breaking News11 mins ago

BREAKING: Former Bursar Of Federal Polytechnic Ado-Ekiti Jailed Over N500m Fraud

Politics13 mins ago

BREAKING: Court Adjourns Suit To Sack New Nigeria Governor

Breaking News16 mins ago

BREAKING: Meet Idris, Ahmed, other new heads of Nigeria’s health agencies

Breaking News20 mins ago

BREAKING: Businesses linked to late Access Bank CEO Herbert Wigwe

Breaking News29 mins ago

Limpopo man kidnapped, brutally murdered while accompanying a woman to relieve herself in bushes

Politics49 mins ago

BREAKING: Former Nigerian Head of State, Gowon, Declines FG and ECOWAS’ Invitation to Address Crisis

Relationship51 mins ago

I Proposed Marriage And She Ran Away, Now She’s Back Using Her Daughter As A Bait

Politics56 mins ago

BREAKING: Politicians Who Could Not Get Power Through Ballot Working To Plunge Nigeria Into Anarchy – Shettima

Entertainment57 mins ago

NEWS: “Grandpa of Over 70, Where Were u?” Verydarkman Calls Out Charly Boy Over Proposed Protest

Politics1 hour ago

Breaking: Finally, Federal Government Grants NLC 1 Wish

AFCON1 hour ago

I’m A Nigerian – Man City Star Defender Defends Why He Has Super Eagles Logo Tattooed On His Arm

Politics1 hour ago

BREAKING: Pres Tinubu decries mismanagement of Nigeria’s assets, promises to unlock trillions in public wealth

Politics1 hour ago

BREAKING: Anambra Shippers Association, ASA tasks FG, South-East govs to make Onitsha River Port functional

Breaking News2 hours ago

BREAKING: Group raises the alarm over presence of Hamas chief in Nigeria, warns of security implications

Breaking News2 hours ago

He had a knife, I had a stick and I beat him mercilessly – Woman recounts how she fought armed thief

Breaking News2 hours ago

“She said aunty you’re beautiful and I was smiling before I realized my phone was gone” — Lady shares how little girl complimented her and stole her phone

Entertainment2 hours ago

“If you know you know” – Reactions as Cubana Chief Priest gives Nedu ‘tortoise’ to produce money

Entertainment2 hours ago

How 50 Cent flogged, chased P-Square, other Nigerian artists out of backstage – Eedris Abdulkareem

Breaking News2 hours ago

My father is still alive; I have a lot to be grateful for

AFCON2 hours ago

BREAKING: “He’s made me who I am today as a player” -Jordan Ayew pays emotional tribute to departed Crystal Palace manager Roy Hodgson

AFCON2 hours ago

BREAKING: Barcelona Legend Praises Super Eagles Winger As Better Dribbler Than Messi, Ronaldinho, and Robben

Breaking News2 hours ago

BREAKING: Reduce Prices Of Cement Or Face Border Opening for cement importation-Minister Of Housing And Urban Development Caunton Manufacturers.

Breaking News3 hours ago

BREAKING: Residents Blocks Dangote’s Truck Carrying Bags of Rice and Loot It Empty

Entertainment3 hours ago

BREAKING: “I’m also an orphan” – Actress Nkechi Blessing tells Davido as he prepares to donate N300M to orphanages in Nigeria

Politics3 hours ago

BREAKING: Vice President Shettima confirms interception of forty-five trucks moving maize out of Nigeria

Breaking News3 hours ago

Hardship: Tinubu cannot speak now because APC caused our problems – Senator Daniels

Relationship3 hours ago

No Matter How Desperate You Are, You Should Never Date These Kinds Of Women

Breaking News3 hours ago

BREAKING: No Nation Can Wage War On Israel (Photos)

Breaking News3 hours ago

BREAKING: Burkina Faso leader warns Tinubu and ECOWAS that they are prepared to fight

Breaking News3 hours ago

“Marriage is now a business, never take your wife abroad without prenup” – Lady advises

Politics3 hours ago

We Are Not Protesting, We Love President Tinubu’s Administration – Igbo Men Celebrate (Watch Video)

Breaking News3 hours ago

Hardship: Hunger may provoke Nigerians to revolt against Tinubu’s administration, says Northern Youth Leader

Breaking News3 hours ago

It Was Ndigbo’s Turn To Rule But We Were Robbed; Let Nigerians Deal With Their Hardship – IPOB Warns South-Easterners Against Hardship Protests

Relationship3 hours ago

25 Ways To Forget Your Ex

Relationship3 hours ago

33 Signs He Wants To Marry You (What You Need To Look For)

Relationship3 hours ago

How To Be A Good Mother – 25 Qualities

Relationship3 hours ago

26 Signs That Your Relationship Is Over

Relationship3 hours ago

How To Know If She’s The One: 15 Clear Signs That Indicate It

Relationship3 hours ago

29 Signs That A Taurus Man Is In Love With You

Breaking News3 hours ago

BREAKING: Chizoba Wigwe, Wife of Herbert Wigwe, Built One of Nigeria’s Largest Construction Companies

Relationship3 hours ago

What Makes A Man Fall Deeply In Love With A Woman?

Relationship4 hours ago

25 Ways To Make Your Girlfriend Feel Loved And Special

Relationship4 hours ago

21 Things Men Want In A Relationship Desperately

Relationship4 hours ago

25 Signs He Wants To Start A Relationship With You

Relationship4 hours ago

251 Ways To Say Thank You

Relationship4 hours ago

20 Warning Signs You Are In A Codependent Relationship

Relationship4 hours ago

27 Qualities That Men Look For In A Woman

Relationship4 hours ago

Dear Men, Stop Thinking Of Condoms When You See Women, You Can Actually Do This Instead – Nigeria Lady

Politics4 hours ago

BREAKING: Kano State House of Assembly Orders Refund of N260 Million by State Agencies for Misappropriation

Breaking News15 hours ago

BREAKING: Tinubu Has Put Smiles on the Faces of Nigerians, Citizens Are the Cause and Beneficiaries of Their Own Problems — Anambra APC Chieftain

Health1 day ago

Don’t Drink Coke If You Have Any Of These 3 Medical Conditions.

Health1 day ago

If You Eat Two Bananas Per Day For A Month, This is What Will Happen To Your Body

Breaking News7 hours ago

BREAKING: Food Prices Drop In Kano, Taraba, Kwara, Niger

Breaking News2 days ago

BREAKING: Dangote Kicks As State Arrests Its Trucks Over Alleged Diversion Of Cement To Cameroon

Health1 day ago

Stop Boiling Meat With These Two Ingredients, They Damage Your Liver

Breaking News19 hours ago

BREAKING: Haiti’s Former First Lady is Indicted in Her Husband’s Assassination

Health1 day ago

4 Foods You Can Eat To Help Shrink Swollen Prostate

Politics2 days ago

JUST-IN: He is Hungry for More Power & Want to become the Richest President in the World – Asiwaju Tinubu has no time for angry, hungry Nigerians – Buhari

Health1 day ago

3 Ways Sex Can Benefit Your Body

Breaking News14 hours ago

BREAKING: “The Most Clueless Government In The History Of Nigeria. Tinubu Is Fighting FX Issues With Guns”- Deji Adeyanju Reacts As EFCC Officials Open Fire On BDC Operators In Abuja

Health8 hours ago

Drink This And Say Goodbye To Joint, Legs And Back Pains In Less Than 7 Days

Health1 day ago

What Happens If You Swallow a Watermelon Seed

Health1 day ago

Does urinating after intercourse prevent pregnancy

Health1 day ago

One Drink You Should Avoid Taking In Your 40s, 50s And Above To Keep Your Liver Safe

Health7 hours ago

Ladies :Why You Should Eat Avocado When Pregnant

Health7 hours ago

Late Night Eating Is Unhealthy But If You Must, Eat These 3 Foods Instead to Maintain Good Health

Health7 hours ago

3 Healthy Reasons Why You Should Eat Catfish

Breaking News7 hours ago

JUST-IN: Herdsmen Allegedly Destroy Rice Farm In Saki, Stakeholders Condenm Act

Health1 day ago

5 Medical Problems That Can Be Prevented By Eating Watermelon Every day

Breaking News2 days ago

Meet 2 African Presidents Who Were Shot And Killed By Their Trusted Personal Guards

Breaking News13 hours ago

BREAKING: Alleged Mastermind in Murder of Rivers DPO, SP Bako Angbashim, Suspected to be Deceased

Health1 day ago

Drink Boiled Onion And Lemon Juice Twice A Day To Cure These Diseases

Health1 day ago

Soak Onions In Water Overnight and Drink It On An Empty Stomach If You Want This Thing To Happen

Breaking News2 days ago

BREAKING: 2Baba ‘Shot Dead’ in Rivers

Breaking News18 hours ago

4 Things That Keep Men Poor For The Rest Of Their Lives

Breaking News2 days ago

I Regret Choosing To Be A Lesbian And Dating Married Women And Young Girls, My Parents Fell Sick Because Of This

Health7 hours ago

Health Problems You Can Treat By Eating Sugarcane Regularly

Health7 hours ago

Signs A Man is Suffering From Small Private Organ Syndrome & Helpful Tips

Health7 hours ago

Ways To Control High Blood Pressure

Health1 day ago

Here Are Types Of Foods You Should Start Eating If You Get Older

Health8 hours ago

4 Stroke Warning Signs You Shouldn’t Ignore

Breaking News2 days ago

FG Sends Strong Message To Primary School Boy Who Tackled Tinubu For Causing Hardship, Nigerians React

Breaking News2 days ago

I Am 53 Years Old Now, I Have Never Been Married Or Slept With A Man Because Of My Mother’s Condition (Watch Video)

Breaking News14 hours ago

“Resign Now” – Protest Sweeps FCT Abuja Over Tinubu’s Ineptitude in Delivering the Dividends of Democracy Months After Assuming Office as

Breaking News13 hours ago

BREAKING: “On top this thing I go march for 10 hours” – Corps member fumes over meal she got at NYSC orientation camp

Health7 hours ago

5 Things You Might Be Doing That Can Harm Your Kidneys

Breaking News2 days ago

Police Arrest Man While Attempting to Facilitate Medical Assistance For Suspect With Gunshot Injury

Health1 day ago

Reasons Men Should Always Eat Garlic Once In A While

Health1 day ago

3 Reasons Why You Don’t Add Weight Even Though You Eat A Lot

Politics1 day ago

If You Are Too Slim, Eat These Foods To Gain More Weight

AFCON18 hours ago

Olympic Qualifier: Cameroon release squad for Super Falcons

Breaking News13 hours ago

BREAKING: We Were in Bed Together Basking, When He Took My Hands And Told Me About His Secrets Plans

Health1 day ago

Health Benefits of Coconut Water And Bitter Kola Mixture

Breaking News13 hours ago

BREAKING: Enugu police Commissioner orders arrest of native doctor in viral videos performing acts of cruelty on animals in his shrine

Breaking News2 days ago

I Regret Sleeping With My Caretaker Who Has A Family Because I Could Not Afford To Pay Rent And Don’t Want To Go Back Home Because

Politics7 hours ago

BREAKING: Tinubu Admitted To Me He Had No Blueprints On How To Govern Nigeria — Former APC Campaign Director

Health7 hours ago

Do Men Really Hit Menopause Just As Women Do

Breaking News18 hours ago

Top 10 African Countries With The Lowest Population At The Outset Of 2024

Breaking News2 days ago

BREAKING: Forex Reforms Paying Off, There’s Light Ahead — CBN Governor Says His Job Is The World’s Second Toughest

Trending