A Senator representing Edo North, Adams Oshiomhole has highlighted a significant shift in the banking sector, stating that bankers can no longer rely solely on personal connections with the Central Bank of Nigeria (CBN) governor to amass substantial profits.
He explained that there is a concerted effort to streamline the market, eliminating opportunities for arbitrage and ensuring that access to foreign currency is earned through legitimate banking practices. He stated that before now banks profited from the disparities between official exchange rates and rates on the parallel market, but the CBN's current approach aims to rectify this by promoting transparency and accountability in currency transactions. He commended the CBN's policy initiatives aimed at curbing the diversion of funds obtained through official channels for unauthorized purposes. He also lauded the CBN's efforts to stabilize the exchange rate, noting a noticeable appreciation of the naira in recent weeks.
He said in an interview with Channels TV, ''People might not be happy with the exchange rate. However, no banker will be posting huge profits just because he has a relationship with the CBN governor anymore. Now they are trying to merge the market, no free dollar and no free naira. You must earn it and you must do proper banking. Over the years we have seen a situation where banks are just posting profit courtesy of gaps between official rate and the so-called parallel market rate.
And I think the CBN now is doing the right thing by saying we will create a situation where you have access to force and then you divert it to other purposes. That is a huge policy, it has its own consequences. Sometimes the people will always feel the pinch but no pain, no gain. There is something they [CBN] have done which we have to acknowledge. When the exchange rate went from 2000 to one dollar, people were scared and I was scared. Because to get back can be an issue but we saw how the CBN creatively got some handshake between the monetary authorities and we are beginning to see the naira appreciating within certain limit.''