CBN Reinstates Keystone Bank, UBA, Others To Forex Market

Keystone Bank on Thursday said the Central Bank of Nigeria had readmitted it into the spot and wholesale forwards segment of the foreign exchange market.

The bank said in a statement issued in Lagos that the CBN readmitted it sequel to the provision of evidence of sales of foreign exchange to Small and Medium scale Enterprises (SMEs).

It also said the re-admission was because the bank had been selling to the SMEs since the introduction of the special window to such businesses.

Earlier in the week, the CBN had banned 14 banks from the weekly wholesale spot and forwards market leaving only eight banks.

According to the CBN, the banks were sanctioned for failure to adhere to the foreign exchange supply policy to SMEs thereby frustrating the efforts of small businesses that needed foreign exchange.

The eight banks that were not suspended include; Access Bank Plc, Diamond Bank Plc, Fidelity Bank Plc, Heritage Bank Plc, Jaiz Bank, Sterling Bank Plc, Unity Bank Plc and Zenith Bank

Hafiz Bakare, the Acting Managing Director of Keystone Bank, said: “SMEs are an integral part of the economy of Nigeria and as such we at Keystone Bank are committed to supporting this sector.

“We are pleased to have clarified the banks position with the CBN as we have always shown support for SMEs through our work with farmers, manufacturers, schools and other business owners.”

A source within the CBN stated the sale of FX to SMEs has become the “gold standard” for participating in the Forex market and the CBN would not hesitate to sanction any bank and its officials who circumvent the rules.

In addition, the remaining suspended banks were also in the process of providing verifiable proof of compliance and once they do so, they would be readmitted.