June 13, 2024

The naira sinks further against the dollar  January 17th, 2024, at the official and the parallel markets.    

The domestic currency depreciated 6% to close at N931.23 to a dollar at the close of business, based on data from NAFEM where forex is officially traded.  

This represents an N52.72 loss or a 6% decrease in the local currency compared to the N878.57 closed the previous day.  

Similarly, the naira depreciated at the parallel forex market where forex is sold unofficially, the exchange rate quoted at N1320/$1, representing a 3.03% decrease over what it closed the previous day, while peer-to-peer traders quoted around N1331.80/$1.  

The Central Bank of Nigeria (CBN) said that it will collaborate with relevant agencies to impose appropriate sanctions after a forensic review uncovered severe infractions, widespread abuse, and substantial non-compliance with market regulations around foreign exchange transactions.  

This is according to Mrs Hakama Sidi Ali, the Acting Director of the Corporate Communications Department at the CBN, in a statement on Wednesday.  

She elaborated that the CBN had commissioned an independent forensic review conducted by a renowned firm, which served as the basis for these crucial decisions.  

Mrs Sidi Ali also stressed the CBN’s resolute determination to cleanse the financial services sector, instil trust among all market participants, and build confidence among both internal and external stakeholders in the Nigerian economy.  

The statement read:  

“The CBN Acting Director, Corporate Communications Department, Mrs. Hakama Sidi Ali, disclosed this in Abuja on Wednesday, January 17, 2024, explaining that the Bank had commissioned an independent forensic review by a reputable firm. She also disclosed that payment of the forex backlog for qualified transactions had commenced.

“She, however, noted that the review revealed grave infractions, gross abuse, and significant non-compliance with market regulations, and appropriate sanctions would be enforced in collaboration with relevant agencies.

“Mrs Sidi Ali stressed the CBN’s resolve to sanitize the financial services sector and foster trust among all market participants, as well as internal and external stakeholders, in the Nigerian economy. Nevertheless, she said the CBN will continue to settle the legitimate foreign exchange backlog as it has consistently been doing in the last three months.”  

The CBN also said that it has carried out a major financial injection of approximately $2 billion spanning diverse sectors, including manufacturing, aviation, and petroleum.  

It highlighted the successful clearance of the entire liability of 14 banks, marking a significant milestone in resolving the forex backlog, and initiated settlements with foreign airlines.      


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