FINANCIAL EXPERT COMMENDS CENTRAL BANK OF NIGERIA OVER PROPOSED SANCTIONS AGAINST BREACH OF FOREIGN EXCHANGE CONTRACT.

Austin Ineh, Benin City.

The Central Bank of Nigeria, CBN, has been commended for its decision to pursue legal actions against parties found to have breached foreign exchange rules, following the conclusion of a forensic audit into undelivered forward contracts

A financial expert, the Venerable Professor Ifuero Osamwonyi gave the commendation in an interview with Radio Nigeria, describing the move as one in the right direction.

He also lauded the apex bank for engaging a very reputable audit firm to carry out the exercise, which he said goes a long way to show the fairness, integrity, and transparency of the audit.

The Venerable Professor Osamwonyi noted that the timing of the forensic audit was apt, as there had been a persistent call for a clean-up of the nation’s foreign exchange sector due to issues of round tripping, mismatching , and over-invoicing which has been bedeviling the sector.

He urged the CBN to walk the walk by implementing the sanctions, and not stop at making threats; adding that the apex bank should take a further step by putting measures in place that will ensure the system was not messed up again after the clean-up.

The Central Bank of Nigeria had in a document titled Frequently Asked Questions on the settlement of undelivered forward contracts, stated that it plans to pursue civic, administrative, or criminal sanctions against parties found to have breached foreign exchange rules following the conclusion of a forensic audit into undelivered forward contracts.