The Central Bank of Nigeria (CBN) has disqualified Stanbic IBTC from participating in its most recent Retail Dutch Auction System (rDAS) due to compliance concerns. The exclusion took effect during the auction held on August 6.
According to the apex bank, Stanbic IBTC was penalized for failing to meet the 3:00 PM submission deadline. Similar penalties were imposed on Wema Bank and First City Monument Bank (FCMB) for the same reason. Additionally, Suntrust Bank and Rand were penalized for submitting bids in an incorrect format.
In a statement released by Omolara Duke, Director of the Financial Markets Department at the CBN, it was noted that the disqualified bids totaled $279 million. The CBN stressed the importance of adhering to submission guidelines, emphasizing that all bids must be submitted between 9:00 AM and 3:00 PM on auction days. Furthermore, the bids must comply with the approved template to be considered valid.
“The call for bids was in the naira/US dollar (N/US$) currency pair for unmet foreign exchange demand backed by verifiable Forms A and M only,” the statement read. “All bids were password-protected and submitted through the dedicated email address provided by the CBN between 09:00 AM and 3:00 PM. Bids received after 3:00 PM were disqualified. Passwords for the bids were sent after the auction closed. The total bids received were valued at $1,191,071,651.59.”
The statement further disclosed that, after collation, the Committee of Governors of the Central Bank of Nigeria approved a cut-off bid of N1495.00/US$, with total successful bids amounting to $815,362,006.30.
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