Central Bank of Nigeria (CBN) Governor Yemi Cardoso has unveiled ongoing investigations into foreign exchange forwards worth approximately $2.4 billion, highlighting discrepancies and irregularities in these transactions.
Governor Cardoso disclosed this information following the Monetary Policy Committee (MPC) meeting in Abuja, shedding light on the forensic audit conducted to assess the validity of these FX forwards.
During the audit process, it was discovered that many transactions did not meet the necessary criteria for validation, with issues ranging from unauthorized allocations to lack of proper documentation, and potential illegality.
Addressing concerns about backlogs and market transparency, Governor Cardoso assured stakeholders that the CBN remains committed to settling recognized backlogs while maintaining an open and transparent market environment.
To address inflation and stabilize prices, the MPC announced significant policy changes, including a 200 basis points hike in the benchmark interest rate to 24.75 percent and adjustments to reserve requirements for banks.
Looking ahead, Governor Cardoso expressed optimism about a gradual moderation of inflation rates and emphasized the importance of implementing agricultural policies to enhance food supply.
Regarding cryptocurrency regulation and the Binance scandal, Governor Cardoso clarified the CBN’s role and emphasized collaboration with relevant authorities, highlighting that cryptocurrency regulation falls under the jurisdiction of the Security and Exchange Commission (SEC).
These developments underscore the CBN’s commitment to maintaining price stability, fostering economic growth, and ensuring transparency in the financial sector.
