MfBs don’t trade in FX  —NAMB President

By Matthew Denis, Abuja

The President of National Association of Microfinance Banks (NAMB), Alhaji Yusuf Ahmed Gyallesu has debunked the allegations that some of their members are engaging in the foreign exchange (FX) operations for clients.

Nigerian NewsDirect gathered from a reliable source that some Microfinance Banks (MfBs) operators were trading foreign exchange for their clients who had borrowed money to travel abroad.

Speaking with Nigerian NewsDirect on Sunday, Gyallesu said “we are not allowed to trade in foreign exchagnge by the modus operandi directed by the Central Bank of Nigeria (CBN).

“However, in every rule, there are defaulters. So those members that are trading in foreign exchange unaware, the apex bank is monitoring and they will be sanctioned  appropriately.

“Foreign exchange is one of the items that is non permission activities of microfinance banks by CBN and NDIC.

“We’re not allowed to trade in foreign exchange rates and estate development among others because these items are highly capital intensive.

“Microfinance money is made for loans to customers but where you go and put your money in foreign exchange, you should that those sectors are very volatile in transactions and some many things involved.”

The NAMB President stressed that the association is not aware of any member trading in forex as it’s the CBN that will know since it goes to inspect the goods and operations of Bureaux De Change members.

He said, “ I’m aware that recently the apex bank had issued a circular about dealers of foreign exchange and any microfinance banker caught trading will be sanction appropriately.

Gyallesu emphasized that as part of their Corporate responsibility as an association they are currently moving from one geo-political zone to the other enlightening their members to strictly adhere to the rules and regulations that governs their operations laid down by CBN.