NSA, CBN Move To Safeguard Nigeria’s Foreign Exchange Market, Combat Speculative Activities
In a concerted effort to safeguard Nigeria’s foreign exchange market and combat speculative activities, the Office of the National Security Adviser (ONSA) and the Central Bank of Nigeria (CBN) have marshal out plans aimed at addressing challenges impacting the nation’s economic stability.
The primary objective of the alliance is to systematically identify, thoroughly investigate and appropriately penalize individuals and organizations involved in wrongful activities within the FX market.
A statement by Zakari U. Mijinyawa, Head, Strategic Communication in the office of the National Security Adviser, said this would be achieved by leveraging the expertise of the agencies, adding that the government aim to deter malicious practices, protect investor interests, and promote sustainable economic growth.
He noted that recent intelligence reports have highlighted continued illicit activities within the Nigerian foreign exchange market which led the ONSA and CBN to embark on the collaborative approach to tackle the infractions.
Mijinyawa said that part of the measures is the CBN’s proactive measures to stabilize the foreign exchange market and stimulate economic activities.
As a means of reducing the pressure on the naira, the Economic and Financial Crimes Commission (EFCC) has raised a 7,000-man special task force across its 14 zonal commands to clamp down on dollar racketeers.
This against the backdrop of the activities of both domestic and international speculators undermining the effectiveness of the initiatives as they operate through various channels, thereby exacerbating the depreciation of the Nigerian Naira and contributing to inflation and economic instability.
To address the exchange rate volatility, the CBN initiated a comprehensive strategy to enhance liquidity in the forex market, including unifying FX market segments, clearing outstanding FX obligations, introducing new operational mechanisms for Bureau De Change operators, enforcing the Net Open Position limit for commercial banks, and adjusting the remunerable Standing Deposit Facility cap.
According to Mijinyawa; “This partnership will involve a coordinated effort with key law enforcement agencies, including the Nigeria Police Force (NPF), the Economic and Financial Crimes Commission (EFCC), the Nigeria Customs Service and the Nigeria Financial Intelligence Unit (NFIU).
“This joint effort underscores the commitment of the Nigerian government to improving its Anti-Money Laundering and Counter Financing of Terrorism (AML/CFT) framework and exiting the grey list of the Financial Action Task Force.
“In addition, the efforts will make progress in ensuring a stable and transparent foreign exchange market, fostering investor confidence, and advancing the nation’s economic well-being”.
