Bank CEO Explains why Banks are Rejecting Dollar Deposits

Bank CEO Explains why Banks are Rejecting Dollar Deposits

The Group Managing Director, First City Monument Bank Plc (FCMB), Ladi Balogun, has given explanation behind commercial banks’ refusal to collect cash deposits in dollars. According to him, it is to discourage naira speculation.

“Banks no longer accept dollar cash due to large speculation on the currency. However, commercial lenders will continue to receive dollar transfers from other banks. His comments were confirmed by another Nigerian lender, which asked not to be identified,” he said in a Reuters conference.

“We are constrained due to the current influx of foreign exchange cash deposits we have been receiving in recent times, and the lack of available foreign exchange cash outlets, to stop receiving foreign exchange cash deposits”.

In similar vein, Standard Chartered Bank has told its customers it would no longer accept foreign exchange deposits in cash due to an unprecedented influx of cash deposits by customers.

The bank said it would stop receiving forex cash deposits from August 11, “until the situation improves.”

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