CBK suspends Ecobank from forex trade for a week

CBK suspends Ecobank from forex trade for a week

The Central Bank of Kenya (CBK) has suspended Ecobank from forex trade over what it termed as unsafe trading practices and breaches of the Prudential Guidelines on Foreign Exchange Exposure Limits in March 2022.

The lender will, consequently, not be in a position to undertake any sort of forex trade for seven days effective March 29, 2022.

“During this time Ecobank cannot transact, inter alia, in the interbank foreign exchange market. However, all committed transactions as of March 28, 2022, can be settled,” said CBK.

According to the CBK, the lender did not have robust risk controls to prevent breaches in its foreign exchange exposure limits.

Conditions For Return

Ecobank is now required to give provisions on a remedial plan that would show specific measures that the bank will put in place to address the non-compliance that CBK put in place, by March 31, 2022.

Reverse on the additional exposure amount that was as a result of the regulatory breach will also be made by Ecobank.

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