Report: CBN Identifies How Banks, Traders Play Roles in Naira’s Fall to N1,200/$, Reveals Next Move

• There is hope on the horizon for the naira against the US dollar at the foreign exchange markets
• The CBN has set its eyes on banks and black market traders as it moves to help the naira recovers
• The apex bank has also identified some of the reasons naira is depreciating, and efforts to sanction defaulters

The Central Bank of Nigeria is reportedly planning a new set of sanctions targeted at banks and black market traders.

The Nation reports that the apex bank will probe Deposit Money Banks for hoarding foreign exchange and engaging in round-tripping.

The exchange rate gap between the official and black markets is currently over N400, with one dollar selling at N808 officially and N1,200 unofficially.

The report claimed that some banks are speculating, purchasing from the official window and selling for profit in parallel markets.

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Part of the report reads:

"This activities is sabotaging government’s effort to halt the free fall of the naira"

Also, a Bureau De Change (BDC) operator accused banks of hoarding dollars to make huge profits.

Another source in the CBN added that speculators are keeping piles of dollars with plans to trade for massive profits in future deals.

It was further revealed that the CBN plans to comprehensively address the issues of speculation through heavy sanctions on defaulting banks and BDC operators.

“Government through the CBN, plans to probe bank hoarding and roundtripping with heavy sanctions awaiting defaulters.

"This is because the apex bank believed hoarders – banks and black parallel operators- are responsible for the artificial scarcity that is driving up forex rates. Government plans through the CBN, is to address the issues of speculation comprehensively and through heavy sanctions."

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Legit.ng also reported that Bureau de Change dealers want to crash the dollar across the country.

ABCON initiated the move in support of the CBN efforts to stabilise the naira at the foreign exchange market

The wide disparity between the black market and the official exchange rate has been a genuine concern for the CBN.

Source: Legit.ng