Unused Dollar: CBN Slashes Deadline For Refund To 2 Days

 

In the bid to enhance transparency and efficiency in the use of the Wholesale Dutch Auction System (WDAS)  funds, the Central Bank of Nigeria (CBN) has reduced the deadline for refund of unused dollar purchased from the official window to two working days effective today.
This indicates a three days reduction from the five days that applied before now.
In a circular to all authorised dealers entitled “Utilisation of Funds Purchased from CBN (WDAS) Window” the apex bank stated “With effect from Monday, July 9, 2012 funds sourced from the WDAS shall be utilised within two working days.
‘‘Any unutilised funds after the two working days from the date of settlement shall be refunded to the CBN for repurchase at the prevailing rate or the rate the funds were purchased, whichever is lower.”
The bank warned dealers to ensure compliance as defaulters would face severe sanctions.
“Authorised dealers are required to ensure compliance, failing which the following sanctions shall apply: the refund of the amount to the CBN with interest at LIBOR+5 per cent; payment of monetary fine in accordance with the provisions of BOFIA 1991 (as amended); and any other appropriate penalty.”
The CBN Director of Trade and Exchange Department, Batari Musa who signed the circular noted that the new rules supersede the provisions of paragraph 13 of the one with Ref No. FMD/FED/CIR/GEN/01/082/10 dated December 29, 2010 on the subject which stipulates five working days for refund.