The Central Bank of Nigeria (CBN) has warned authorised dealers to ensure that transactions are conducted transparently.
The apex bank warned that any form of distortion leading to market manipulation would face sanctions.
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In a statement issued in Abuja yesterday and signed by the Director, Financial Market Department, Aliyu Ashiru, the bank said investigations revealed cases of underreporting of transaction rates and fixed income transactions.
The apex bank said it allows financial market transactions to be conducted on a ‘willing buyer and willing seller’ basis that will ultimately engender transparency in the process.
“All authorised dealers are reminded that the Central Bank of Nigeria (CBN) has permitted financial market transactions to be conducted on a ‘willing buyer, willing seller’ basis and therefore expects prices to be quoted and displayed transparently,” it said.
The bank noted that it is not unaware of infractions carried out by authorised dealers, adding: “The attention of the CBN has been drawn to the practice of authorised dealers (and their customers) in reporting inaccurate and misleading information on transactions concluded in the financial market.
Ongoing investigations have revealed instances of underreporting of transaction rates and practice of second cheques on foreign exchange and fixed income transactions
It maintained that it would deal ruthlessly with distortions and the reporting of false transactions in the FX market.
“Deliberate attempts to create price distortion by reporting false transaction details amount to market manipulation, which will not be tolerated and henceforth face sanctions,” it added.
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