TSA: CBN Enforces Sanction, Shuns Nine Banks in Dollar Sales – Thisday

CBN

The Central Bank of Nigeria (CBN) enforced the sanction imposed on banks that failed to return Nigerian National Petroleum Corporation (NNPC)/Nigerian Liquefied Natural Gas (NLNG) Company dollar deposits to the federal government’s Treasury Single Account (TSA) by not selling dollars to them when it intervened on the interbank foreign exchange market yesterday.

The CBN on Tuesday barred nine banks from participating in the FX market for not remitting a total of $2.334 billion to the TSA.

The affected banks were the United Bank for Africa (UBA) Plc – $530 million, First Bank of Nigeria (FBN) Ltd. – $469 million, Diamond Bank Plc – $287 million, Sterling Bank Plc – $269 million, Skye Bank Plc — $221 million, Fidelity Bank Plc – $209 million, Keystone Bank Ltd. – $139 million, First City Monument Bank (FCMB) Ltd. – $125 million, and Heritage Bank Limited – $85.5 million.

The nine banks still face the prospect of further financial fines, which shall be communicated to them by the CBN in the coming days.

However, having complied with the CBN directive, as exclusively reported by THISDAY yesterday, UBA was readmitted into the FX market, effective today.

UBA, in a statement yesterday, confirmed that the CBN had readmitted it into the FX market following its remittance of all NNPC/NLNG dollar deposits. The bank thanked the public for its continued support and patronage.

The CBN also confirmed it had readmitted UBA into the forex market effective today.

Read more at http://www.thisdaylive.com/index.php/2016/08/25/tsa-cbn-enforces-sanction-shuns-nine-banks-in-dollar-sales/