Tag: Forex trading

EFCC stops dollartransactions,asks embassies to charge in Naira

Aminu Imam
EFCC Naira

The Economic and Financial Crimes Commission, (EFCC), has read the Riot Act to foreign missions based in Nigeria, banning them from transacting in foreign currencies, and mandating the use of Naira in their financial businesses. The EFCC has also mandated Nigerian foreign missions domiciled abroad to accept Naira in their financial businesses. The move, the EFCC noted, is to tackle the dollarisation of the Nigerian economy and the degradation of the Naira. The anti-graft commission, in an advisory to the Minister of Foreign Affairs, Ambassador Yusuf Tuggar, titled: EFCC Advisory to…

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CBN launches Forex Price Verification portal

Aminu Imam

…Makes price verification report compulsory for dealers The Central Bank of Nigeria, (CBN), has launched a go-live foreign exchange price verification system portal. The apex bank made this known in a statement, titled: Go-live of the Central Bank of Nigeria Price Verification System Portal and released by the banks Director of Trade and Exchange Department, O. S. Nnaji. The CBN stated that with effect from August 31, 2023, all applications for Forms M shall be accompanied by a valid Price Verification Report generated from the Price Verification Portal, adding that…

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Forex Market: Oil companies resume dollar sales to banks

Aminu Imam

The Central Bank of Nigeria (CBN) has permitted International Oil Companies (IOCs) to resume the sale of US dollars to banks in a move aimed at injecting liquidity into the Investors & Exporters (I&E) foreign exchange market. Developments in the foreign exchange market yesterday suggest that the restriction placed on the IOCs from selling dollars to dealing with member banks had been lifted, according to a source familiar with the matter. We expect this to inject additional liquidity into the Investors & Exporters window and help address the existing backlog…

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CBN lifts cash deposit restriction on domiciliary accounts

Aminu Imam

Allows $10, 000 withdrawals daily The Central Bank of Nigeria (CBN) issued a press statement on June 18, 2023, providing further guidance to Deposit Money Banks (DMBs) on the operational changes to the foreign exchange market announced on June 14, 2023. The statement followed an extraordinary Bankers Committee meeting held to discuss the implementation and implications of the policy changes for the banking public. According to the CBN, the policy changes aim to promote transparency, liquidity, and price discovery in the FX market in order to improve FX supply, discourage…

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DSS to quiz bank CEOs over forex allocations since 2017

Aminu Imam

The Department of State Services (DSS) has opened wide-ranging investigations into foreign exchange (forex) received and their subsequent allocation to customers by each deposit money bank in the country, and the involvement of the Central Bank of Nigeria, (CBN). The investigation comes at a time of increasing searchlight on the governor of the apex bank, Godwin Emefiele, who just returned from overseas after reports that he will be arrested by the secret police in connection with allegations of funding terrorism. According to reports, the bank CEOs have been given a…

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Naira slumps to N885 per US$ despite EFCCs raids on BDC hubs

Aminu Imam

Nigeria’s local currency, the Naira, has dropped to a new low of N885 per dollar at the parallel section of the foreign exchange (FX) market, otherwise known as the black market. The figure represents a depreciation of N70, or 8.6%, from the N815 it traded last week. Speaking yesterday, some Bureau-De-Change (BDC) operators said the US dollar demand has been swelling and putting pressure on the naira. They put the buying price of the dollar at N860 and the selling price at N885, leaving a N25 profit margin. A currency…

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Forex: Bureau De Change operators urge CBN to lift ban

Aminu Imam

The Association of Bureaux De Change Operators of Nigeria, (ABCON), has urged the Central Bank of Nigeria, (CBN), to reconsider the ban to allow BDC operators receive Diaspora remittances in 2022. This was disclosed in a statement released at the weekend, signed by ABCON President, Alhaji (Dr.) Aminu Gwadabe. According to him, the BDC industrys yearly transaction volume of over N1 trillion is in jeopardy, while enormous capital investment in the sector is becoming obsolete, eroding, and winding down. Gwadabe suggested that, just as the CBN de-risked the agricultural sector,…

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Amidst CBN crackdown, FX website, AbokiFX, says it will temporarily suspend rates update

Aminu Imam

An on-line foreign exchange rate website, AbokiFX, has said it will temporarily suspend rates on all its platforms pending the resolution of issues with the Central Bank of Nigeria, (CBN). The CBN is currently investigating the website, with its governor, Godwin Emefiele, accusing it of economic sabotage, while tending to blame it for the rapid fall in the value of the naira against the dollar and other leading currencies. Emiefiele had, while responding to questions after the MPC meeting on Friday, referred to the owner of AbokiFX, Olumide Oniwinde, as an illegal…

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Banks warn customers against violation of CBN forex directives

Aminu Imam

The Central Bank of Nigeria, (CBN), has announced that it will inject extra dollars into approved banks in order to increase the economys foreign exchange (forex) supply. According to senior CBN officials, the apex bank can handle all valid transactions channelled through banks. The black (parallel) market accounted for less than 1% of forex transactions, according to the officials, and should never be utilised to decide Nigerias dollar exchange rate. The apex bank met with Ministries, Departments and Agencies, (MDAs), including airline operators, to discuss stopping the collection of foreign…

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‘Stop investing in forex trading, bitcoin’, EFCC Warns Nigerians

Aminu Imam

The Economic and Financial Crimes Commission, (EFCC), has warned Nigerians against investing in fraudulent investment schemes that promised high returns with little risk. In a statement issued on Monday by its Head, Media and Publicity, Wilson Uwujaren, the Commission asked Nigerians to stop investing in Ponzi schemes, forex trading, and most recently, bitcoin trading. The EFCC expressed worry that despite the enforcement and public enlightenment interventions from it and other stakeholders, such investment scams had continued to thrive. It urged Nigerians to desist from taking an uncalculated risk in desperation…

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