By Providence Obuh

Microfinance Bank (MfB) are not Foreign Exchange traders owing to the fact that they are not a dealing bank, except for clients who are importers, said  operators  This is coming on the heels of the introduction of a new foreign exchange policy by the Central Bank of Nigeria (CBN) that allow market forces to determine the Naira exchange rate in a new single structured foreign exchange market.  Some operators who spoke with FV said that the forex policy has nothing to do with MfBs and that they are not a clearing house.

According to the Immediate Past Executive Chairman, Lagos State Microfinance Institution (LASMI) Mr. Bashorun Alabi-Macfoy, said, “The new forex rule does not really affect MfBs because we  are not a dealing bank or a member of the clearing house, MfBs use to clear their cheque through the commercial banks they have and most of their customers did not apply for forex.

“The new rule is welcomed because we had the same situation during the regime of former Military President, General Ibrahim Babangida (rtd) where all companies have to look for line of credit from abroad and then bring the line of credit to commercial bank in Nigeria and they will open their register against that line of credit. Then the supplier will have bills for collection with the company and when the supplier deliver, they will pay him, if he has foreign exchange line, the bank will open letter of credit to the supplier bank abroad and their bank will confirm it, and they will get the goods and sought their own foreign exchange”