CBN warns dealers against manipulation of information on forex transactions

For the umpteenth time, the Central Bank of Nigeria (CBN) has warned authorized foreign exchange  dealers to desist from violation of financial market price transparency as perpetuation of such manipulation will attract appropriate sanctions henceforth.

In a circular to authorised dealers signed by Aliyu Ashiru, acting Director, Financial Services Department, the apex bank said its attention had been drawn to the practice of some dealers and their customers in reporting inaccurate and misleading information on transitions concluded in the financial market.

It stated that the behaviour was not compliant with the ethical standard 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 henceforth face sanctions.”

It noted that it has allowed authorized dealers  to conduct financial market transaction on a ‘willing buyer, willing seller’ basis and expects prices to be quoted and displayed in a transparent manner.

It said: “The CBN remains committed to a transparent and well-functioning financial market and enjoins all stakeholders to carry out their legitimate business in compliance with the rules and guidelines as published by the CBN.”