The Central Bank of Nigeria, CBN said it has noticed that some Authorised Dealers have continued to buy and sell foreign exchange referred to as “free funds”.
This is ‘despite the provision of the circular referenced TED/AD/29/2004 dated March 4, 2004 on the subject. Against the background, Authorised Dealers are to note that dealing in foreign exchange without appropriate documentation which includes relevant entries, blotters, physical documents and non-disclosure to the Regulatory Authorities is a breach of extant regulations.
In a terse statement issued by W.D Gotring, the apex bank ‘reiterates that, as provided in the laws and regulations governing dealings in foreign exchange, Authorised Dealers shall NOT sell foreign exchange without appropriate documentation and disclosure to the Regulatory Authorities irrespective of the source of such funds’.
The CBN warns that all ‘Authorised Dealers shall deal in eligible transactions only and not to engage in any foreign exchange transactions on terms inconsistent with the extant laws and/or regulations’.
The CBN has since put in place strict rules and regulations guiding the sales of Forex to business and indivuduals since Nigeria’s Forex reserve has been depleted to record low as a result of crashing oil prices.