Banks induce customers to conversion of dollar deposits to naira

Checkout Magazine has learnt that banks are inducing their customers to sell foreign currencies domiciled in their branches.

Some of the banks, it was discovered, have developed platforms to sensitise customers on how the dollar deposits in their domiciliary accounts can be converted to naira.

In a note via SMS to customers, some of the banks said domiciliary account holders can change United States (U.S.) dollars in their accounts to naira directly on its Internet banking platform instantly.

The SMS read: “It is as instant as a regular transfer between accounts. The service is available between 9 am to 4 pm Mondays to Fridays, excluding public holidays.

“Customers are expected to log into their internet banking platform, go to the FX transaction portal, and select FX sales.”

Although the bank claimed the rate was competitive, it pegged the transaction rate at N1,450 to the dollar.

The rate was lower than the N1,510/$ exchange rate at the black market yesterday.

The bank also pegged the daily transaction limit at $50,000.

When contacted, a staff of the Central Bank of Nigeria (CBN), confirmed the development, saying: “Yes, it is true that banks may contact customers who have domiciliary accounts and recommend converting their foreign currency to naira.

“However, it is important to note that this is not a mandatory directive from the Central Bank of Nigeria (CBN). Rather, it is simply a service being offered by the banks.”



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