Cbn directs banks to file forex returns in dollars
A recent development in the Nigerian financial sector!
According to reports, the Central Bank of Nigeria (CBN) has directed banks in the country to file their foreign exchange (forex) returns in US dollars, effective from January 2023.
This directive is aimed at improving the accuracy and transparency of forex transactions in the country. The CBN has been working to strengthen the country's foreign exchange management system, and this move is part of its efforts to achieve this goal.
Here are some key points to note about this development:
- New filing format: From January 2023, banks will be required to file their forex returns in US dollars, instead of the naira, which was the previous practice.
- Improved accuracy: The CBN believes that filing forex returns in US dollars will improve the accuracy of forex transactions, as it will reduce the risk of errors and discrepancies that can occur when converting foreign exchange transactions to naira.
- Enhanced transparency: The new filing format is expected to enhance transparency in forex transactions, as it will provide a clearer picture of the country's foreign exchange inflows and outflows.
- Compliance: Banks are expected to comply with the new directive, and failure to do so may attract penalties or other regulatory actions.
Overall, this development is expected to improve the efficiency and transparency of the foreign exchange market in Nigeria, and promote a more stable and sustainable economy.