Connect with us

Econony

EXPOSED: CBN uncovers $2.4bn forex scam

Published

on

In a startling revelation, the Central Bank of Nigeria (CBN), Governor Yemi Cardoso, has disclosed that law enforcement agencies are investigating foreign exchange forwards valued at approximately $2.4 billion.

Cardoso noted that these transactions are deemed ineligible for payment.

This disclosure emerged after the Monetary Policy Committee (MPC) meeting held in Abuja on Tuesday, March 26.

The CBN governor shed light on the meticulous forensic audit conducted on these transactions, uncovering numerous discrepancies and rendering them invalid.

The CBN, upon settling certain tranches of FX backlog, encountered transactions marred by issues concerning their authenticity.

Consequently, Deloitte management consultants were engaged to conduct a comprehensive forensic analysis spanning several months to scrutinize the legitimacy of these forward-contracted transactions.

During the audit process, it was established that several transactions failed to meet the criteria for validation. Instances were found where allocations worth millions of dollars were disbursed without corresponding requests, and some transactions lacked proper documentation or were outright illegal.

According to Cardoso, “In the cause of that forensic audit, we determined that a number of these transactions did not qualify. In some cases, you had some requests, which well you actually had some allocations that were made in millions of dollars, which were never requested for.

“You also had somewhere they had no Naira and they were also allocated, you know, huge sums, the foreign exchange and the list goes on and it was for that reason that we refused to validate those particular transactions.

“We refused to validate them because you know apart from the fact that documentation was not satisfactory in many cases they were outright illegal and the law enforcement agencies of course are now looking into those transactions that are as far as we’re concerned, not valid to be paid.”

Addressing concerns about potential backlogs among stakeholders, Cardoso assured that the market remains open and transparent for them to address any outstanding contractual obligations. However, the CBN has diligently verified and settled recognized backlogs of forward transactions.

Cardoso reiterated the CBN’s commitment to maintaining price stability and fighting inflation. He emphasized the need for strict adherence to the core mandate of the central bank, ensuring the restoration of the average Nigerian’s purchasing power.

To this end, the MPC announced a significant hike in the benchmark interest rate to 24.75 percent as part of efforts to curb inflation. This decision, accompanied by adjustments to reserve requirements for banks, aims to tighten control over the money supply and stabilize prices.

According to Cardoso, the committee decided to: raise the Monetary Policy Rate (MPR) by 200 basis points to 24.75 percent from 22.75 percent; adjust the asymmetric corridor around the MPR to +100/-300 basis points; retain the Cash Reserve Ratio of Deposit Money Banks at 45.0 percent; adjust the Cash Reserve Ratio of Merchant Banks from 10.0 percent to 14.0 percent and retain the Liquidity Ratio at 30.0 percent

Looking ahead, the CBN anticipates a gradual moderation of inflation rates by May, with measures in place to foster economic growth while maintaining price stability. The committee called for the full implementation of agricultural policies to enhance food supply and urged broader fiscal consolidation to improve tax collection.

Furthermore, Cardoso addressed concerns regarding the forex market, emphasizing the need to foster competition and transparency. He criticized the “oligopolistic nature of restrictions on dairy imports,” advocating for an open and inclusive foreign exchange market.

On the issue of cryptocurrency regulation and the Binance scandal, Cardoso clarified the CBN’s limited role, highlighting collaboration with relevant authorities while emphasizing that cryptocurrency regulation falls under the purview of the Security and Exchange Commission (SEC).

Continue Reading

Econony

SEE Black Market Dollar To Naira Exchange Rate Today 17 April 2024

Published

on

Black Market Dollar To Naira Exchange Rate Today 17 April 2024 Can Be Accessed 👇

The official naira black market exchange rate in Nigeria today including the Black Market rates, Bureau De Change (BDC), and CBN rates. Please note that the exchange rate is subject to hourly fluctuations influenced by the supply and demand of dollars in the market.

As of now, you can purchase 1 dollar at a certain rate now, however, it’s important to keep in mind that the rate can shift (either upwards or downwards) within hours.

 

What is the dollar-to-naira black market exchange rate?

The local currency (abokiFx) opened at ₦1,115.00 per $1 at the parallel market otherwise known as the black market, today, Wednesday, 17 April 2024, in Lagos Nigeria, after it closed at ₦1,110.00 per $1 on Tuesday, 16 April 2024.

Dollar to Naira (USD to NGN) Black Market Exchange Rate Today
Buying Rate ₦1,050
Selling Rate ₦1,100
How does the black market dollar-to-naira exchange rate compare to the official rate?

The official exchange rate of the US dollar to the Nigerian naira, as of today, 17 April 2024, is ₦ 1,161 per US dollar.
This is the rate that the CBN uses for its transactions and interventions in the foreign exchange market. The official rate is also the basis for the exchange rates of other foreign currencies, such as the euro, the pound sterling, and the Chinese yuan.

The difference between the black market rate and the official rate is called the parallel market premium. The parallel market premium indicates the degree of divergence between the official and unofficial markets, and reflects the level of confidence in the naira and the CBN’s policies.

Disclaimer:We do not set or determine forex rates. The official NAFEX rates are obtained from the website of the FMDQOTC. Parallel market rates (black market rates) are obtained from various sources including online media outlets. The rates you buy or sell forex may be different from what is captured in this article.

Continue Reading

Econony

Nigeria’s Dollar Reserves Crash Dramatically as Naira Rebounds

Published

on

Nigeria is facing a significant depletion of its foreign-exchange reserves, marking a concerning trend not observed in four years. This development has sparked apprehension amid suspicions that the central bank may be exhausting its dollar holdings to bolster the naira, following its commitment to allowing the currency to float more freely.

According to calculations by Bloomberg, liquid reserves have plummeted by 5.6% since March 18, coinciding with the commencement of the naira’s rebound from its record-low levels against the dollar.

As of April 12, Nigeria’s foreign reserves stand at $31.7 billion, reflecting the most substantial decline within a similar timeframe since April 2020, based on data compiled by Bloomberg.

The decline in reserves comes as the Central Bank of Nigeria grapples with stabilizing the naira amidst economic turbulence and fluctuating global currency markets.

The commitment to a more flexible exchange rate regime was initially lauded as a step towards market-driven currency valuation. However, the rapid depletion of reserves has raised concerns about the sustainability of this approach.

Observers point to the delicate balance between supporting the naira’s value to maintain stability in the economy and ensuring an adequate level of reserves to safeguard against external shocks.

The current trajectory raises questions about the central bank’s strategy and its long-term implications for Nigeria’s economic resilience.

Stakeholders are closely monitoring developments in the foreign-exchange market and urging prudent management of reserves to mitigate risks and maintain confidence in the economy.

Continue Reading

Econony

SEE Naira Rates Against The USD, GBP, EURO Today April 16, 2024

Published

on

We are primarily focusing on the Black Market Dollar To Naira Exchange Rate Today, the USD to Naira currency pair are the most traded currency in the FX market.

 

Black Market Exchange Rates

Buying Rate

Selling Rate

Dollar to Naira 1114 1080
Pounds to Naira 1400 1320
Euro to Naira 1214 1140
Canadian Dollar to Naira 1360 1320
Rand to Naira 52 43
Dirham to Naira ‎0 0
Yuan to Naira 62 62
G.Cedi to Nair 119.19 119.19
CFA F. (XOF) To Naira 0.83 0.81
CFA F. (XAF) To Naira 0.74 0.74

Having full knowledge how much USD to NGN black market exchange rate today will give you a better opportunity to plan and make informed decisions.

Continue Reading

Trending

Copyright © 2024