CBK says the lender had concluded a forex transaction contrary to the Prudential Guidelines on Foreign Exchange Exposure Limits.

“In investigating Ecobank’s trading practices and a specific transaction that it had concluded, it is evident that Ecobank did not have sufficiently robust risk controls to prevent breaches on its foreign exchange exposure limits, or the inaccurate reporting of its position,” said CBK in a statement released Monday.

The lender is now required to commence addressing the said reach by Thursday by ensuring corrective measures that led to the non-compliance are addressed.

“The remedial plan should also point to specific measures to address the unsafe trading practices that led to the noncompliance and to enforce adherence to orderly conduct as stipulated in CBK’s Guidelines on Foreign Exchange.”

Ecobank is also to reverse the amount of additional exposures that was created as a result of the regulatory breach.

The lender will halt forex trade for a week until April 4, 2022 and will not be allowed to transact in the interbank foreign exchange market.

CBK has however allowed Ecobank to conclude all committed transaction as at March 28, 2022.

By Fred Odanga Azelwa.