CBN warns forex dealer against price distortions

The Central Bank of Nigeria, CBN, has accused 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.
This was disclosed by the acting director, financial markets department at the CBN, Aliyu Ashiru, in a circular issued to all the market dealers on Wednesday.
The CBN said that 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.