The Central Bank of Nigeria (CBN) on Monday warned authorised dealers in foreign e, change and their customers against reporting inaccurate and misleading information on transactions in an attempt to create price distortion and market manipulation.
The apex bank in a circular signed by the Acting Director, Financial Markets Department, Aliyu M Ashiru, to all authorised dealers, said any behaviour found not to be in compliance with ethical standards associated with a sound financial market and considered a deliberate attempt to create price distortion by reporting false transaction details would amount to market manipulation
The Director said such misconduct would not be tolerated and would henceforth be met with stiff sanctions.
He said the attention of the CBN has been drawn to the illegal practice in recent times by some authorised FX dealers to report inaccurate and misleading information and data on transactions concluded in the financial market, pointing out that ongoing investigations have revealed instances of under-reporting of transaction rates and the practice of ‘second cheques’ on foreign exchange and fixed income transactions.
He reminded all authorised dealers that with the CBN’s permission for financial market transactions to be conducted on a ‘willing buyer, willing seller’ basis, operators must ensure that prices were quoted and displayed in a transparent manner at all times.
The CBN restated its commitment to a transparent and well-functioning financial market, while enjoining all stakeholders to carry out their legitimate businesses in strict compliance with the stipulated rules and guidelines by the apex Bank.
