Nigeria’s House of Representatives has mandated its Committees on Banking Regulations and Banking Institutions to investigative the non-compliance by banks and financial institutions with CBN directives on the Net Open Position Limits.
This resolution followed a matter of urgent importance on the need for banks to implement CBN’s policies on holding excess long foreign exchange and net open Position limits.
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The lawmakers noted that the speculative activity by commercial banks and certain financial institutions has further contributed to the harsh economic situation in the country and led to difficulty by legitimate businesses to obtain forex for their business transactions.
They decried the refusal of commercial banks and certain financial institutions that are reluctant to implement the monetary measures put in place by the apex bank to check this unwholesome practice by banks and other financial institutions in the country.
The lawmakers emphasized that if drastic legislative measures are not taken to enforce the implementation of these directives, the country will continue to experience dire economic hardship as a result of continuous rise in foreign exchange rate.
Editor: Ena Agbanoma
