With Central Bank of Nigeria (CBN) suspending Foreign Exchange (FX) supply to Bureau De Changes (BDCs), a total of six banks in nine months of 2021 generated N145.6 billion income from trading in FX.

The six banks in prior nine months of 2020 had generated a total of N47.16billion from trading in the FX market.

The six banks are Sterling bank Plc, Union Bank of Nigeria Plc, Wema Bank Plc, Guaranty trust Holding Company Plc (GTCO), Access bank Plc and United Bank for Africa Plc (UBA).

For instance, Sterling Bank reported N4.75 billion from FX trading in nine months of 2021 up from N128 million reported in nine months of 2020, while Wema Bank grew its FX trading income by 47 per cent to N207 million in nine months of 2021 from N141 million in nine months of 2020.

The likes of Union Bank of Nigeria reported N3.44billion FX trading income in nine months of 2021, an increase of 51.05 per cent from N2.28 billion reported in nine months of 2020.

Further checks revealed that Tier-1 banks benefitted tremendously from FX trading income in the period with Access bank reporting a net FX trading gain of N86.81 billion in nine months of 2021, 587 per cent increase from N12.63 billion reported in nine months of 2020.

United Bank of Africa reported 78.8 per cent increase in FX trading income to N35.56 billion in nine months of 2021 from N19.88 billion in nine months of 2020, while GTCO grew its FX trading gain to N14.88 billion in nine months of 2021 from N12.10 billion reported in nine months of 2020.

CBN had in July this year announced an end to sales of FX to BDC operators, stating that the parallel market had become a conduit for illicit FX flows and graft.

CBN had also announced that it would no longer process applications for BDC licences in the country.

Analysts expressed that the suspension of FX to BDC operators positively impacted on banks value of FX trading, stressing that the adjustment of Naira to N410.8 (selling rate) against the Dollar also contributed to trading income.

Thisday