As the Nigerian naira experiences a continued decline, trading at approximately N1,500 to a dollar, the Central Bank of Nigeria (CBN) has issued a caution to authorized dealers, urging transparent conduct in transactions. The apex bank warned against any form of market manipulation, stating that sanctions would be imposed on those engaged in distortions.
In a statement from the Director of the Financial Market Department, Aliyu Ashiru, the CBN emphasized its commitment to allowing financial market transactions on a “willing buyer, willing seller” basis to promote transparency. The bank expressed awareness of infractions, such as underreporting of transaction rates and misleading information.
The CBN revealed ongoing investigations into instances of underreporting and the practice of second cheques in foreign exchange and fixed income transactions. It emphasized its intolerance for deliberate attempts to create price distortion through false transaction details, stating that such market manipulation would face sanctions.
Amidst the currency depreciation, with the Pound Sterling reaching N1,855 and Euro at 1,585, the CBN aims to maintain orderliness and professional conduct in the foreign exchange market. Additionally, the regulator announced the clearance of all verified outstanding forex backlogs for foreign airlines, disbursing a total of $136.73 million to the sector. The CBN remains committed to clearing verified backlog payments across various sectors to restore confidence in the Nigerian FX market. The central bank, led by Governor Olayemi Cardoso, is working to improve liquidity in the FX market and discourage speculative actions that could further impact the naira negatively. The public is encouraged to support FX market reforms, with the CBN emphasizing its commitment to market-driven exchange rates determined by market forces.