CBN on ‘N32bn racket’: No room for arbitrage in FX market

The Central Bank of Nigeria (CBN) says there is no room for racketeering or arbitrage in the nation’s forex scheme.

The apex bank made this statement in reaction to a news report that claimed that some people pocket about N32 billion annually from the N306/$ exchange rate regime.

In a statement signed by Isaac Okorafor, director of the corporate communications department at the bank, CBN said it was denied the benefit of responding to the article.

“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,” the statement read.

“For the 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.”

CBN has kept the exchange rate at the Investors and Exporters Window and BDC segment at N360 to a dollar while leaving the interbank rate at N306 to the dollar.

The bank has maintained these rates through intervention to the various aspects of the market and different foreign exchange policies like the restriction of forex for the importation of 42 items including cement, fertilizer, toothpick and rice.

Speaking at the monetary policy committee meeting that held in January, Godwin Emefiele, CBN governor, had said the bank would continue the interventions to ensure convergence of the exchange rates.

He also said the bank would not hesitate to add more items to the forex restriction list.