CBN Sends Strong Message to FX Dealer As Naira Hit Lowest Level Against US Dollar at Official Market

CBN Sends Strong Message to FX Dealer As Naira Hit Lowest Level Against US Dollar at Official Market

  • The CBN has sent a clear message to authorised forex dealers on how the naira is priced in the unofficial market
  • The apex bank promises to punish those behind the heavy depreciation of the naira by quoting high rates
  • This message comes as the naira at the official market hits another new low and also closes higher than the black market

Legit.ng journalist Dave Ibemere has over a decade of experience covering Tech, Energy, Stocks, Investments, and the Economy.

The Central Bank of Nigeria (CBN) has sent a note of warning to all authorised dealers in the foreign exchange market as the naira free fall continues.

In a circular, the Apex Bank warned the dealers to refrain from reporting inaccurate and misleading information on transactions concluded in the financial market.

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Naira to dollar exchange rate
CBN warns authorised forex dealer Photo credit: CITI
Source: Facebook

Legit.ng had earlier reported that the CBN had permitted financial markets transactions to be conducted on a 'willing buyer willing seller' basis, by which prices are expected to be quoted and displayed transparently.

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Many market players are reportedly defying the order, causing distortions in the market.

CBN message reads:

“The attention of the CBN has been drawn to the practice of Authorised Dealers (and their customers) in reporting inaccurate and misleading information on transactions concluded in the financial market.
“This behaviour is not compliant with the ethical standards associated with a sound financial market, and deliberate attempts to create price distortions by reporting false transaction details amounts to market manipulation which will not be tolerated and will henceforth face sanctions."

Naira to dollar exchange rate

Meanwhile, the value of the naira in the foreign exchange market set a new record on Tuesday, January 31, 2024.

Read also

Naira falls to lowest in history in official market, surpasses black market at N1,460 per dollar

Data shows that the naira reached N1,482/$1 on the Investors and Exporters (I&E) window, marking the lowest level in the official market and a N133.95 or a 9.94% value depreciation compared to the previous day's rate of N1,348.62.

Tuesday's official rate is also higher than the parallel market rate of N1,460/$1.

Tinubu's govt sets exchange rate target

Earlier, Legit.ng reported that the federal government expressed optimism about the naira exchange rate in 2024.

Ben Akabueze, the DG of the Budget Office, also said the exchange rate target of 2024 could be achieved.

The naira in 2023 recorded its worst performance in the official and unofficial foreign exchange market.

Source: Legit.ng

Authors:
Dave Ibemere avatar

Dave Ibemere (Senior Business Editor) Dave Ibemere is a senior business editor at Legit.ng. He is a financial journalist with over a decade of experience in print and online media. He also holds a Master's degree from the University of Lagos. He is a member of the African Academy for Open-Source Investigation (AAOSI), the Nigerian Institute of Public Relations and other media think tank groups. He previously worked with The Guardian, BusinessDay, and headed the business desk at Ripples Nigeria. Email: dave.ibemere@corp.legit.ng.

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