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Nigeria’s central bank (CBN) and its national security adviser (ONSA) have joined forces to tackle the problem of forex speculators, who are accused of manipulating the exchange rate and hurting the economy. The two agencies have announced a partnership to identify, investigate, and punish those who are involved in illegal activities in the foreign exchange market.
The partnership, which was revealed by Zakari Mijinyawa, ONSA’s head of strategic communications, on Tuesday, will involve the collaboration of other law enforcement agencies, such as the Nigeria police force (NPF), the Economic and Financial Crimes Commission (EFCC), the Nigeria Customs Service (NCS), and the Nigeria Financial Intelligence Unit (NFIU).
The move is part of the government’s efforts to safeguard Nigeria’s foreign exchange market and combat speculative activities that have contributed to the depreciation of the naira, inflation, and economic instability. The CBN has taken several measures to stabilize the foreign exchange market and stimulate economic activities, such as unifying the market segments, clearing outstanding obligations, introducing new mechanisms for bureau de change operators, enforcing the net open position limit for commercial banks, and adjusting the standing deposit facility cap.
However, these initiatives have been undermined by the activities of speculators, both domestic and international, who operate through various channels and exploit the gaps and loopholes in the market. According to intelligence reports, these speculators have been hoarding, diverting, and inflating the prices of foreign currencies, especially the US dollar, to create artificial scarcity and demand.
To curb this menace, the CBN and ONSA have decided to adopt a coordinated approach to track down and prosecute the perpetrators of these malpractices. They aim to deter malicious practices, protect investor interests, and promote sustainable economic growth. They also hope to improve Nigeria’s anti-money laundering and counter-financing of terrorism (AML/CFT) framework and exit the grey list of the Financial Action Task Force.
The partnership between the CBN and ONSA is expected to make significant progress in ensuring a stable and transparent foreign exchange market, fostering investor confidence, and advancing the nation’s economic well-being. As Nigeria prepares for the 2024 general elections, many citizens are hoping that the government will address the economic challenges that have been worsened by the COVID-19 pandemic and the oil price slump. They are also hoping that the government will uphold the rule of law and the democratic process, and avoid any actions that could jeopardize the peace and security of the country.
Source: BusinessDay
