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  • Business - Economy
  • Updated: January 30, 2024

Forex traders warned by CBN against reporting inaccurate transactions

Forex traders warned by CBN against reporting inaccurate tra

The Central Bank of Nigeria (CBN) has warned Authorised Dealers in the foreign exchange market of reporting inaccurate and misleading information on transactions.

The apex bank warned that such dealers and their customers should desist from such reportage.

The acting director of the financial markets department at the CBN, Aliyu Ashiru, made this known in a circular issued to all the market dealers on Wednesday.

The CBN said that a recent investigation has revealed instances of underreporting of transaction rates and the practice of ‘second cheques’ on foreign exchange and fixed-income transactions.

The CBN had permitted financial markets transactions to be conducted on a ‘willing buyer willing seller’ basis, by which prices are expected to be quoted and displayed transparently.

The bank accused many of the dealers of flouting the order with their reportage, thereby causing distortions in the market and described some of the reports as inaccurate and misleading information.

“This behaviour is not compliant with the ethical standards associated with a sound financial market, and deliberate attempts to create price distortions by reporting false transaction details amounts to market manipulation which will not be tolerated and will henceforth face sanctions,” Ashiru said.

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