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Nigeria’s Central bank suspends lenders from interbank currency market

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Nigeria’s central bank has suspended nine banks from the interbank currency market. The suspensions are because of a failure to remit money owed to the government. It comes after the central bank tightened restrictions on the flow of dollars to domestic lenders in March. That’s forced the banks to delay hard-currency loan and trade repayments — and increased their risk of default. The banks failed to remit $2.1 B, the government’s share of dividends from the state-owned gas company. The banks were supposed to pay the money into the government’s account at the central bank. The banks affected are First Bank, United Bank for Africa, Heritage, Keystone, Skye, Diamond, Sterling and Fidelity Bank.

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