Dollar Rise Spurs EFCC Crackdown On Currency Manipulation By Cryptocurrency Platforms, Others

Dollar Rise Spurs EFCC Crackdown On Currency Manipulation By Cryptocurrency Platforms, Others

1 month ago
1 min read

The Economic and Financial Crimes Commission (EFCC) has intensified its efforts to combat currency manipulation, particularly in light of the rise of the dollar against the naira.

Sources within the commission reveal that this crackdown targets not only cryptocurrency platforms like Binance but also all currency speculators contributing to the instability of the Nigerian foreign exchange market.

“The EFCC is going after all currency speculators to stabilize Nigerian forex,” one source stated, highlighting the commission’s determination to restore order to the market.

This move comes as the dollar saw a slight increase against the naira between Wednesday and Friday, attributed to interbank activities of commercial banks. Analysts have raised concerns about speculative manipulation, with some pointing fingers at platforms like Binance for exacerbating the situation.

READ ALSO: Dollar Rises Against Iraqi Dinar, Local Markets Offer Stability

“The emergency lovers of Binance are back speculating on other P2P apps,” remarked money market analyst Agba Akin, emphasizing the need for intervention from regulatory authorities.

However, stakeholders in the Bureaux De Change (BDC) sector refute allegations that they are behind the currency’s surge, attributing it instead to interbank transactions facilitated by commercial banks. Almustapha Muhammed, Chairman of the Association of Bureaux De Change Operators of Nigeria, clarified that BDCs operate within the parallel market, while commercial banks engage with the Federal Government’s official rate.

“CBN is giving us dollars at N1,101, but some commercial banks are doing interbank conversions,” Muhammed explained, shedding light on the dynamics influencing the exchange rate.

Despite these assertions, concerns persist over the potential implications of unchecked currency manipulation. Economist Opeoluwa underscored the urgency of the situation, revealing that relevant security agencies have flagged it as an “imminent danger” warranting further investigation.

“I am told that they (the security agency) may have to extend their hands to them, just like they did to Binance,” Opeoluwa stated, alluding to the possibility of broader regulatory action.

In response to inquiries, the EFCC reaffirmed its commitment to upholding the law and restoring stability to the foreign exchange market. Dele Oyewale, the commission’s spokesperson, emphasized their proactive stance in ensuring order within Nigeria’s financial landscape.

“The commission is doing everything within the ambit of the law to ensure that there’s sanity in the Nigerian foreign exchange market,” Oyewale asserted.

As stakeholders await further developments, the spotlight remains on regulatory authorities to


MOST READ

Follow Us

Latest from Business

Don't Miss

Naira Appreciates To N1,3339/$1 At Official Market As CBN Addresses Market Volatility

Naira Appreciates To N1,3339/$1 At Official Market As CBN Addresses Market Volatility

The Nigerian naira appreciated significantly on Monday, closing