CBN suspends cheque clearing as dollar sells for N412

Central Bank of Nigeria (CBN) has directed that cheque clearing should be suspended until further notice as Naira plunges further and dollar sells for N412.

According to a notice signed by Sam Okoreje, director of CBN banking services department, the suspension is effective from March 31.

The notice was addressed to all deposit money banks in the country and the Nigeria Interbank Settlement System (NIBSS).

The notice said the suspension is related to the lockdown in Lagos, Ogun and Abuja announced by the president on Sunday.

“In view of these recent developments and in furtherance of the bank’s effort to ensure hitch-free and clearing activities, the Central Bank of Nigeria hereby suspend, until further notice, the clearing of cheques instruments in the Nigerian clearing system starting from March 31, 2020.

“For the avoidance of doubt, no fresh cheque instrument will be allowed to pass through clearing system on March 31, 2020. Only returned cheques will be treated on the said date.”

In the same vein, the dollar exchanged for N412 on Monday at the Bureau De Change segment of the market. This followed a temporary suspension of sale of forex to the Bureau De Change operators in the industry by the Central Bank of Nigeria.

The Association of Bureaux De Change Operators of Nigeria had made a request to the CBN to grant it market holidays, given the ongoing challenges faced in the local and global economies due to the impact of the coronavirus pandemic.