Nigeria banks banned from foreign currency deals - Africa News
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Nigeria banks banned from foreign currency deals

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Nigeria banks banned from foreign currency deals

In a total, nine Nigerian banks have not paid money owed to the government and thus have been suspended from the foreign currency trading.

The banks are said to withhold an aggregate of $2.1bn (£1.6bn) having a place with the state possessed oil organization.

A year ago, President Muhammadu Buhari requested the merger of all state accounts into one single record at the national bank to diminish debasement.

It is about a year since the due date to exchange the cash lapsed.

The banks influenced are Diamond Bank, Fidelity Bank, First Bank, First City Monument Bank, Heritage Bank, Keystone Bank, Skye Bank, Sterling Bank and United Bank for Africa.

Most business banks, particularly littler ones, have endured as an aftereffect of the approach, as government organizations quit storing their cash with them.

Bank clients, particularly the individuals who import and fare merchandise, will be influenced by the boycott as it means they won’t have the capacity to get to their outside coin accounts.

The foreign money exchange boycott is liable to majorly affect the banks required as it is trusted some of them don’t have the assets to hand more than, a source at the Central Bank of Nigeria told the BBC.

An authority at one of the influenced banks told the Reuters news organization the non-installment mirrored the “desperate macroeconomic circumstance”, as opposed to pondering rebelliousness.

Nigeria has endured serious financial issues in view of the moderately low cost of oil, which gives a large portion of the nations outside money income.

The boycott will be lifted separately as every bank exchanges the cash it owes. Every organization is additionally liable to confront a further fine.

The foreign exchanging boycott was activated after the Nigerian National Petroleum Corporation (NNPC) grumbled to President Buhari about the missing cash, a NNPC representative told the BBC.

A year ago, President Buhari assessed government authorities had stolen about $150bn in the earlier decade.

In the past, it was simple for misrepresentation to occur as the legislature did not know what number of financial balances every service held.

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