CBN To Probe FX Traders Over Naira Devaluation Rumour

The Central bank of Nigeria (CBN) said it would probe the source of rumours that the apex bank planned on devaluing the Naira in response to current global economic realities.

The bank in a statement on Thursday said the rumours were false, unwarranted and calculated to serve dubious and selfish ends of some forex traders.

Recall that the outbreak of the Coronavirus led to global economic slowdown, fall in the price of crude oil, and less inflow of dollars into Nigeria.

The health concerns also led to factory closures in China, substantial drop in imports, widespread travel restrictions around the world, and cancellation of many conferences, sporting events, business travels, and FX orders.

However some unscrupulous players in the FX market,saw this as an opportunity to jack up dollars amid concerns that the impact of the ravaging coronavirus on the local currency could get worse thus triggering panic in the market.

On Thursday US dollar had begun to sell at an average of N380 for a dollar in the parallel markets across the country.

To tackle the panic in the market the CBN said it had begun a robust investigation in collaboration with the Nigerian Financial Intelligence Unit (NFIU) and related agencies to uncover the unscrupulous FX dealers, promising that “the full weight of our rules and regulations will be meted out to them, including, but not limited to, being charged for economic sabotage.”

According to the statement, the bank “for nearly four years, has successfully maintained relative stability in all segments of the foreign exchange market, which has enabled investors, households and other economic agents to plan and to conduct their genuine foreign exchange transactions with relative ease.”

Meanwhile the CBN is working with the fiscal authorities to ascertain the expected impacts of the Coronavirus and also assured it would create a stable financial system conducive for job creation and inclusive growth.