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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

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

Naira

Daily Naira Exchange Rates; Thursday, May 6, 2021

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Naira Exchange Rates - Investors King

Naira depreciated further at the parallel market on Thursday as the local currency traded at N485 to a United States Dollar. The Nigerian Naira exchanged at N676 to a British Pound and N585 to a Euro as shown below.

Naira Black Market Exchange Rates

Morning * Midday** Evening *** Final Rates

Date USD GBP EURO YUAN Canadian Australian
NGN BUY/SELL BUY/SELL BUY/SELL BUY/SELL BUY/SELL BUY/SELL
06/05/2021 480/485 665/676 575/585 62/69 395/405 292/320

Bureau De Change Naira Rates

Date

USD

GBP

EURO

NGN

BUY/SELL

BUY/SELL

BUY/SELL

06/05/2021

475/482

663/676

575/587

06/05/2021

475/482

663/676

575/587

Central Bank of Nigeria’s Official Naira Rates

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Forex

CBN Extends N5/$ Incentive Period to Boost Dollar Inflow

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Godwin Emefiele - Investors King

The Central Bank of Nigeria (CBN) has extended the N5 per US Dollar incentive on forex remittance indefinitely to boost liquidity and further deepen economic recovery.

The initiative was scheduled to end on May 8. It was introduced to encourage recipients of dollars to use formal banking channels and help the central bank capture such inflows to boost the stability of the local currency, which has been under pressure after oil prices plunged last year.

“We hereby announce the continuation of the scheme until further notice,” the regulator said in a statement on its website on Thursday.

The naira has been devalued three times since last year after a sharp drop in oil earnings, which accounts for 90% of foreign-exchange inflows, and remittances from workers abroad led to a dollar crunch in the West African nation, which produces the most crude in Africa. The local unit traded for 410.31 on the investors and exporters window, also called Nafex, as of 8:51 a.m. in Lagos.

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US Dollar

Dollar Falls as Risk Appetite Improves, Sterling Dips on BoE

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US Dollar - Investorsking.com

The dollar dropped to its lowest point in three days on Thursday as global market risk appetite improved, while sterling zig-zagged after the Bank of England slowed the pace of its bond-buying, but left interest rates unchanged.

Fewer Americans filed new claims for unemployment benefits last week, data showed, as COVID-19 vaccination efforts and massive amounts of government stimulus led to a further reopening of the economy.

While the U.S. economy has been gaining steam, Federal Reserve speakers on Wednesday downplayed the risks of higher inflation.

Those statements reinforced “the lower-for-longer mentality with regards to interest rates,” making the greenback less appealing, said Neil Jones, head of FX sales at Mizuho.

The safehaven U.S. dollar was last down 0.31% at 91.977 against a basket of peer currencies.

“What we’ve seen early in New York is a little bit of back-and-forth gyrations, just because of the Bank of England meeting,” said Erik Bregar, director and head of FX strategy at the Exchange Bank of Canada.

The Bank of England said it would slow the pace of its bond-buying as it sharply increased its forecast for Britain’s economic growth this year after its coronavirus slump, but it stressed it was not tightening monetary policy.

“They kept their QE target in place but they said they are going to reduce the weekly pace of purchases, but that’s not a signal and so sterling has kind of gone up and down and done nothing at the end of the day,” Bregar said.

The pound was last down 0.08% against the weaker dollar at $1.3900 .

The euro was up 0.47% versus the dollar at $1.2061 , and up 0.65% against the pound, at 86.88 pence per euro.

Investors were also paying attention to elections in Scotland that could herald a political showdown over a new independence referendum.

The Australian dollar fell sharply overnight when China said it would stop its economic dialogue with Australia, but the currency had recovered to trade close to flat on the day as European markets opened.

The Aussie was up 0.1% versus the U.S. dollar at 0.77515 at 1028 GMT, having hit as low of 0.7701 overnight.

The New Zealand dollar also dropped and was down 0.1% on the day.

“The announcements of the formal suspension of the economic dialogue between China and Australia should not have a lasting impact on markets given the already strained relationship between the two ahead of the event,” wrote ING strategists in a note to clients.

The Canadian dollar hit a three-and-a-half year high, helped by oil price gains and the Bank of Canada’s recent shift to more hawkish guidance.

In cryptocurrencies, ether traded around $3,500 after reaching a record high of $3,559.97 on Tuesday, skyrocketing nearly 800% this month.

Bitcoin declined 0.2% to $57,392.75.

The meme-based virtual currency Dogecoin soared on Wednesday to an all-time high, extending its 2021 rally to become the fourth-biggest digital coin.

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