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UBS Rogue Trader Kweku Adoboli Deported to Ghana

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  • UBS Rogue Trader Kweku Adoboli Deported to Ghana

The well published UBS trader, Kweku Adoboli, has finally been deported back to Ghana after serving years in jail for GB£1.3 billion fraud.

The Ghanian, who moved to the UK at the age of twelve, was sentenced to seven years imprisonment in 2012 and served half of the sentence.

Adoboli, 38, was released in June 2015 and immediately faced deportation.

While fighting Home Office (UKVI) to halt his deportation, Adoboli embarked on a national tour to enlighten students, financial traders and others in the banking sector on ethics and risk management.

Adoboli, in one of his numerous interviews, said UBS’ Global Synthetic Equities Trading team in London took the decision that led to GB£1.3 billion losses together despite been the one that opened the positions.

UK’s biggest rogue trader Kweku Adoboli

Speaking to Ross Ashcroft on Renegade Inc, the trader said he was forced to flip his position in 2011 after been pressured by his supervisor against his better judgement.

According to him, his team made $135 million of the total $150 million profit UBS generated in 2011. But other members of Global Synthetic Equities group that was created to generate profit from a product set called Delta One like Deutsche Bank made $3 billion, while the number two position generated about $900 million in profit.

With the profit that low compared to other members of the group, the bank’s CEO pushed the team to up profit, which involves taking on more risks to compete with the likes of Deutsche Bank, to climb the elite ladder.

Although he agreed to increase profit, he denied initially agreeing to the trades that led to the losses until he was pulled aside and warned on the danger of going against the party line.

This, according to him, includes the CEO of the bank that told him the market will fly despite his fundamental analysis saying otherwise.

Adoboli flipped his position after the CEO convinced him and others in the team to do the same.

However, the market started going down that same day, yet they kept on adding to losing positions until they couldn’t sustain the losses after amassing a total of GB£1.3 billion negative positions.

The trader later had a meeting with the bank’s management who advised him to take responsibility with a promise they will support him. They, however, reneged on that agreement after he sent email admitting guilt.

Adoboli was later charged with one count of fraud by abuse of position and one count of false accounting. Acquitted of false accounting, Adoboli was convicted of fraud.

After seven years of tough legal battle, Adoboli was finally deported on November 20, 2018

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Naira

Nigeria Hits Historic High as Currency in Circulation Surges to N3.69 Trillion

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Nigeria’s currency in circulation surged to a historic high of N3.69 trillion, according to data released by the Central Bank of Nigeria (CBN).

This figure represents an increase of N43.07 billion or 1.18 percent from the total of N3.65 trillion reported in January 2024 and a 13.64 percent year-on-year rise from N3.25 trillion reported in February 2023.

Currency in circulation encompasses the physical cash, including paper notes and coins, actively used in transactions between consumers and businesses within the country.

The latest statistics indicate a considerable uptick in the availability of cash within the Nigerian economy.

The surge in currency supply comes amidst lingering concerns over a potential cash crunch following the monetary policy adjustments by the CBN, particularly the aggressive tightening stance of the Monetary Policy Committee (MPC).

Analysts attribute this spike to various factors, including the fear factor stemming from the cash crunch experienced in 2023 and lingering uncertainties surrounding the administration of physical currency.

Despite the surge in currency in circulation, Nigeria’s economic growth remains sluggish, with projections indicating growth rates of around 2.9 percent to 3.1 percent for 2024.

Also, inflation remains a significant concern, with the headline inflation rate climbing to 31.70 percent in February 2024 from 29.9 percent reported in January 2024, according to data from the National Bureau of Statistics (NBS).

The CBN’s proactive approach to monetary policy, including a historic increase in the monetary policy rate (MPR) to 24.75 percent, underscores the central bank’s commitment to addressing economic challenges and fostering stability amidst persistent pressures.

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Naira

Nigerian Naira Surges to N1,350 per Dollar in Parallel Market

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New Naira notes

The Nigerian Naira has appreciated to N1,350 per dollar in the parallel market, a significant gain from its previous rate of N1,430 per dollar just a day earlier.

Similarly, in the Nigerian Foreign Exchange Market (NAFEM), the naira strengthened to N1,382.95 per dollar, indicating an upward trend across key forex segments.

Data from FMDQ revealed that the indicative exchange rate for NAFEM fell to N1,382.95 per dollar from N1,408.04 per dollar on the previous day, representing a gain of N25.09 for the naira.

This surge in the naira’s value has widened the margin between the parallel market rate and NAFEM to N32.95 per dollar from N21.96 per dollar previously.

Analysts attribute this impressive surge to recent foreign exchange reforms implemented by the Central Bank of Nigeria (CBN).

These reforms, including the consolidation of exchange rate windows and liberalization of the FX market, have contributed to bolstering the naira’s strength against the dollar.

The CBN’s proactive measures aim to promote stability, transparency, and liquidity in the foreign exchange market, fostering confidence among investors and strengthening the national currency.

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CBN Governor Reveals $2.4 Billion Forex Forwards Under Investigation

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Naira Exchange Rates - Investors King

Governor Yemi Cardoso of the Central Bank of Nigeria (CBN) disclosed that law enforcement agencies are currently investigating foreign exchange forwards valued at $2.4 billion.

This announcement came in the wake of the Monetary Policy Committee (MPC) meeting held in Abuja on Tuesday, March 26.

Governor Cardoso shed light on the meticulous forensic audit conducted on these transactions, which uncovered numerous discrepancies, rendering them ineligible for payment.

The CBN, while settling certain tranches of FX backlog, encountered transactions riddled with issues concerning their authenticity.

To address these concerns, Deloitte management consultants were enlisted to conduct a comprehensive forensic analysis spanning several months.

The audit revealed a multitude of irregularities, including allocations disbursed without corresponding requests, lack of proper documentation, and instances of outright illegality.

Cardoso emphasized the gravity of the situation, stating, “We refused to validate them because, apart from the fact that documentation was not satisfactory in many cases, they were outright illegal.”

He underscored the commitment of law enforcement agencies to investigate these transactions thoroughly.

Despite concerns about potential backlogs among stakeholders, Cardoso assured that the market remains open and transparent for addressing any outstanding contractual obligations.

The CBN has diligently verified and settled recognized backlogs of forward transactions.

This revelation comes at a critical juncture as Nigeria grapples with economic challenges, including inflationary pressures.

The MPC’s decision to raise the benchmark interest rate to 24.75 percent reflects efforts to stabilize prices and restore the purchasing power of the average Nigerian.

As investigations unfold and regulatory scrutiny intensifies, the CBN’s commitment to transparency and financial integrity will be closely monitored by stakeholders across the nation.

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