CBN To Sanction 7 Banks For Alleged Breach Of Foreign Exchange Transactions

The Central Bank of Nigeria (CBN) may sanction seven commercial banks for an offence involving alleged breach of foreign exchange transactions otherwise known as 'round tripping'.

CBN's latest investigation of the seven banks is the second batch in the series of attempt by the apex bank to arrest the abuse of forex allocation to commercial lending banks.
The seven banks involved in the current  investigation by the CBN  which started on Tuesday, October 4, involved First City Monument Bank (FCMB), Sterling Bank, Skye Bank and Equatorial Trust Bank (ETB). Others are Diamond Bank, Fidelity Bank and Ecobank.
Round tripping is the practice of selling foreign exchange sourced from CBN at the 'black market' to make gains. This   has contributed to the widening gap between CBN official rate and the parallel rate.