. Concludes payment of $64.44m verified claims by airlines
By Stanley Onyeka, Lagos
The Central Bank of Nigeria (CBN), yesterday, warned authorized dealers against transaction manipulation in the foreign exchange (FX) nmarket, warning that such actions will attract sanctions.
A statement by the Director, Financial Market Department, Aliyu Ashiru, said CBN investigations have revealed cases of underreporting of transaction rates and fixed income transactions.
The statement reads in part: “All Authorised Dealers are reminded that the Central Bank of Nigeria (CBN) has permitted financial market transactions to be conducted on a ‘willing buyer, willing seller’ basis, and therefore expects prices to be quoted and displayed transparently.
“The attention of the CBN has been drawn to the practice of authorized dealers (and their customers) in reporting inaccurate and misleading information on transactions concluded in the financial market. Ongoing investigations have revealed instances of underreporting of transaction rates and practice of second cheques on foreign exchange and fixed income transactions.
“Deliberate attempts to create price distortion by reporting false transaction details amounts to market manipulation which will not be tolerated and henceforth face sanctions.”
Despite the warning, the naira sustained its slide at the FX market, trading around N1,500 to $1.
The CBN is working with stakeholders to ensure liquidity improves within the FX market, thereby reducing pressure on the Naira.
This is even CBN said it has concluded the payment of all verified claims by airlines with an additional $64.44 million to the concerned airlines, in fulfillment of its pledge to clear the backlog of foreign exchange owed foreign airlines in the country.
The Acting Director, Corporate Communications at the CBN, Mrs. Hakama Sidi Ali, in a statement yesterday, noted that the latest amount paid to the airlines brought the total verified amount paid to that sector to $136.73 million.
She added that all the verified airline claims had now been cleared.
She said the Governor, Olayemi Cardoso, and his team are doubly committed and would stop at nothing to ensure that the verified backlog of payments across all other sectors is cleared, and confidence is restored in the Nigerian foreign exchange market.
She also assured that the CBN is working with stakeholders to ensure liquidity improves within the FX market, thereby reducing pressure on the Naira.
While expressing optimism that the FX market would respond positively with the latest injection of over $64 million, she admonished actors in the market to guard against speculation as such actions could hurt the Naira.
Ali, therefore, urged the public to support the reforms in the FX market, as the CBN will continue to promote orderliness and professional conduct by all participants to ensure market forces determine exchange rates.
