- Currency Speculators’ll Lose Money, ABCON Warns BDCs
The Association of Bureau De Change Operators of Nigeria has told its members they will lose money if they engage in sharp practices in the foreign exchange market.
It advised members to comply with the association and the Central Bank of Nigeria’s regulations in their daily operations.
The President, ABCON, Alhaji Aminu Gwadabe, said these at an emergency meeting organised by the association to warn members against the consequences of engaging in illegal forex activities.
He spoke in Lagos on Monday.
Gwadabe said, “The purpose of this emergency meeting is to address certain current issues that have emerged in the market. If you think you are keeping money (forex), you are deceiving yourselves; you are going to lose money. The CBN is going to inject liquidity into the system.
“Let us not be deceived. No amount of frustration or coercion will stop the CBN as it has agreed to give liquidity and it will be a surprise.”
He enjoined the BDC directors to cooperate with the CBN and security agencies as they stepped up efforts to stabilise the foreign market and the exchange rate.
The ABCON leader assured its members that the association would continue to update them on emerging industry trends.
He said, ‘Sometimes, government officials and security agencies cannot distinguish between licensed BDCs and a parallel market operators. They see us as parallel market operators.
“Of course, we cannot completely claim some of us are not part of the parallel market operator. We cannot say no to it until we all agree to do it well and comply with all directives. That is when the regulators, security agencies will be willing to at least listen to what we are telling them.
Highlighting the responsibilities of the BDC operators, Gwadabe said, “You are expected to comply with your Know-Your-Customer policy, cash transaction report, and association transaction report; these three compliance area are key.
“Again, the security agencies and regulators have put the directors of the BDCs under watch. Don’t say you have not been informed.”
He said the recent fall in the value of the naira against the United States dollar was unacceptable, urging members to play their parts for the local unit to reverse the loss.
CBN Spends $11.5bn in Q1 2020 to Support the Economy and Dwindling Naira
CBN Injects $11.5bn Into the Economy in the First Quarter
The Central Bank of Nigeria (CBN) injected a combined $11.5 billion into the nation’s foreign exchange market to stabilise the economy and support the Naira value in the first quarter of the year.
According to the latest report from the apex bank, the central bank injected $2.96 billion into the nation’s forex market in the month of January. Another $3.39 billion was used to support the economy in February while $4.7 billion was supplied in the month of March, the very month the economy was locked and all operations grounded to curb the spread of COVID-19.
A further breakdown of the report revealed that the Investors and Exporters’ foreign exchange window, Small and Medium enterprises and Invisible segments received a total of $7.23 billion of the $11.5 billion, the Bureau De Change segment received $3.6 billion while the Interbank and WDAS/RDAS got the rest in the first quarter.
The report noted that the apex bank injected a total sum of $14.72 billion and $28.55 billion into the economy in 2018 and 2019, respectively.
Meanwhile, the central bank is yet to commence the sales of forex to the bureau de change following the March suspension.
But has commenced partial sales to all commercial banks for onward sales to parents and small businesses across the country.
Mr Isaac Okorafor, the Director, Corporate Communications, CBN, had said, “The CBN has also made complete arrangements to resume foreign exchange sales to the BDC segment of the market for business travels, personal travels and other designated retail uses, as soon as international flights resume.”
DSS Arrests EFCC, Acting Chairman, Magu
DSS Arrested Magu, the Acting Chairman of EFCC
The Department of State Services (DSS) has arrested the acting chairman of the Economic and Financial Crimes Commission (EFCC), Ibrahim Magu, on allegation bordering on financial misappropriation, abuse of power and embesslement.
The Acting Chairman was accused of siphoning part of the money recovered from looters, a Punch reported stated.
The report stated “It was learnt that the security details to Magu put up a stiff resistance during the arrest of their principal, as they objected to the DSS move.
But he is now undergoing interrogation at the DSS Headquarters In Aso Drive.
This is happening barely two weeks after the Attorney-General of the Federation, Abubakar Malami (SAN) reportedly complained to the President, Major General Muhammadu Buhari (retd.) about Magu’s conduct and advised that he should be relieved of his appointment.
The AGF was said to have accused Magu of insubordination and discrepancies in the figures of funds recovered by the EFCC.
Again CBN Debits Banks N118 Billion for Failing to Meet CRR Target
CBN Debits Deposit Money Banks N118bn for Not Meeting CRR Target
The Central Bank of Nigeria (CBN) on Friday debited the nation’s deposit money banks a total sum of N118 billion for failing to meet 27.5 percent Cash Reserve Ratio (CRR) target.
This is the fourth of such action, bringing the total amount debited so far this year to N2.2 trillion.
According to Tunde Abidoye, an analyst at Lagos-based FBN Quest, the move brings “further downward pressure on banks liquidity ratios and earnings.”
“Based on the total sum that each bank has been debited this year, and our NIM assumptions for each bank, we estimate an aggregate opportunity cost of funds of N86bn for our universe of banks coverage,” Abidoye stated in a note to clients.
The central bank continues to debit banks to force them to loan more into the real sector and also reduce their forex purchasing power to better manage the nation’s weak foreign reserves and curb capital outflow. A series of recent reports have pointed to a possible foreign exchange devaluation to ease pressure on the nation’s reserves.
The report shows that the Stanbic IBTC and Guaranty Trust Bank were debited N15 billion each.
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