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For the second day, investors on the floor of the Nigerian Stock Exchange (NSE) have continued to dump the shares of Banks suspended from participating in Foreign Exchange (Forex) transactions by the Central Bank of Nigeria (CBN).
The restriction order was announced on Tuesday by the CBN as part of measures to compel management of the Banks to remit all Nigerian National Petroleum Corporation (NNPC) funds in their vaults to a dedicated Treasury Single Account (TSA) with the apex Bank.
At the end of transactions on Thursday, the affected Banks shed between 0.8 per cent and 7.81 per cent of their value.
Specifically, Skye Bank Plc declined more by recording 7.8 per cent drop, closely followed by Fidelity Bank (3.0 per cent), FBN Holdings (1.9 per cent),Diamond Bank and First City Monument Bank Plc (0.8 per cent).
Already, the United Bank for Africa Plc (UBA) has been re-admitted by the CBN. Heritage and Keystone Banks are not listed on the floor of the Exchange.
In a statement on Thursday, First Bank said: “As you are aware, there have been a number of media reports referencing the temporary suspension of FirstBank from the Nigerian foreign exchange market on account of failure to comply with the Treasury Single Account (TSA) policy”.
The statement added: “FirstBank wishes to confirm, that it has been and remain in compliance with all tenets of the TSA policy. The Bank also wishes to state categorically that there has been full disclosure to the CBN and other regulatory authorities at all times”.
Clarifying its position to customers, Heritage Bank
Said: “ The Central Bank of Nigeria recent announcement of temporarily suspending nine commercial banks, including Heritage Bank, from accessing the foreign exchange market is a systemic challenge for the banking sector, which cuts across all banks.
“As a financial institution, we have continued to build on foundation of sound corporate; maintained a full disclosure of outstanding TSA funds of the Central Bank of Nigeria, and worked diligently to fulfil our obligations.
“We will continue to remit funds towards our commitments to the CBN, even under these challenging market conditions.
“As a customer-eccentric bank, it is necessary to inform our customers of the recent developments in the industry.
“Be rest assured that we have engaged with relevant stakeholders, with the support of CBN to resolve this industry-wide systemic issue quickly. “We understand the importance of helping you as our customers to find foreign exchange to help grow your businesses and promote economic growth in Nigeria.
“We want to guarantee our teeming banking customers there will be no impact at all. There will be some impact on establishing new trade lines through the foreign exchange market and your relationship manager will be able to help you with best-advice if you need to do this. This development does not affect customers’ own deposits, both local and those in foreign currency. It also means that services such as payments – local and international, will go through as normal whenever you need to make them. Remittance services will be hitch-free and you can transact anywhere in the world, any time of the day, on your mobile application or internet banking.
“Our primary responsibility is to you, our customer. We equally assure you that as one of the fastest growing banks in Nigeria, and you our customers by our side, our dream of becoming an industry leader in the near future will be achievable”.
“As a financial institution, we have continued to build on foundation of sound corporate; maintained a full disclosure of outstanding TSA funds of the Central Bank of Nigeria, and worked diligently to fulfil our obligations.
“We will continue to remit funds towards our commitments to the CBN, even under these challenging market conditions.
“As a customer-eccentric bank, it is necessary to inform our customers of the recent developments in the industry.
“Be rest assured that we have engaged with relevant stakeholders, with the support of CBN to resolve this industry-wide systemic issue quickly. “We understand the importance of helping you as our customers to find foreign exchange to help grow your businesses and promote economic growth in Nigeria.
“We want to guarantee our teeming banking customers there will be no impact at all. There will be some impact on establishing new trade lines through the foreign exchange market and your relationship manager will be able to help you with best-advice if you need to do this. This development does not affect customers’ own deposits, both local and those in foreign currency. It also means that services such as payments – local and international, will go through as normal whenever you need to make them. Remittance services will be hitch-free and you can transact anywhere in the world, any time of the day, on your mobile application or internet banking.
“Our primary responsibility is to you, our customer. We equally assure you that as one of the fastest growing banks in Nigeria, and you our customers by our side, our dream of becoming an industry leader in the near future will be achievable”.
*Contact citybusinessnews@yahoo.com
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