CBN Denies Arbitrage in FX Market

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The Central Bank of Nigeria (CBN) on Monday said there is no room for arbitrage opportunities in the foreign exchange(FX) market.

The bank also assured Nigerians that it would continue to act in the best interest of the country.

In addition, the banking sector regulator reiterated that it remains focused on its core mandate of sustaining the stability in the foreign exchange
(FX) market.

The bank stated this in a statement, while reacting to a news report on alleged FX racketeering in the Bank, saying the allegation was unfounded.

The statement explained: “The management of the CBN wishes to react to the report that faceless agents in Nigeria are exploiting the country’s multiple exchange rates to devastating effects and allegedly with the backing of regulators.

“The CBN wishes to state unequivocally that this report is unfounded and untrue,” even as it challenged BusinessDay to provide the names and also verifiable evidence of collusion between “these faceless agents and officials of the CBN, who are working to perpetuate these so called FX racket schemes.”

“As most financial observers have noted, that the FX rates across various markets governed and regulated by the CBN, have been converging, leaving no room for arbitrage opportunities in Nigeria’s FX market.

“For avoidance of doubt, the CBN will continue to act in the best interest of Nigeria and shall ensure it remains focused on its core mandate of sustaining the stability in the FX market,” it added.