The central bank of Nigeria is seeking out withdraw and deposit difference to earn forex in lexnet current economic climate. Nigeria relies heavily on imports for much of its consumption. Consequently, Emefiele has imposed controls on imports that use U.S. dollars, as well as limiting the use of the currency for specific commodities. This has exacerbated the country s currency woes.
The Economic and Financial Crimes Commission EFCC has called foreign exchange dealers to a meeting, with the intention of ending the "run on the naira" and "brazen foreign exchange speculation". The EFCC has information linking some persons to the illegal hoarding of foreign currencies.
The Nigerian goment has tried various methods to reduce inflation, such as shutting down Bureau de change operators. It also tries to determine what causes the dollar s rise. It is not always possible to pin-point which factor is responsible for the spike in the naira. In many cases, high importation causes a spike in dollar prices. If an import ban is announced, the naira will crash.
There are some scam companies masquerading as forex investment firms. These companies manipulate their clients by promising unrealistic returns and then elope. However, local brokers and regular forex traders in Nigeria say that the market is safe and legal as long as the trader is aware of the risks involved. A Lagos-based online forex trader, Boyo Michael, believes that working with a foreign broker is safe as long as he manages the risks properly.
Nigeria s forex market is undergoing a crisis. The country s currency has devalued to new lows on the black market and many investors are hedging against the currency s decline. As a result, they are increasingly trading in dollar-denominated digital assets. Bitcoin alone increased trade volume in Nigeria by more than $2 million in the past week. This is a significant increase in trade volume compared to the same period last year.
The central bank of Nigeria is concerned with the value of the naira and is making deliberate moves to limit further depreciation. A shortage of dollars has caused the naira to plunge to successive record lows on the parallel market. In order to ease the pressure on reserves, the central bank has suspended forex sales to retail currency traders. While this has helped stabilize the official market, the parallel market remains a threat to the currency.
The CBN has attributed the downward slide of the naira to illegal forex activities. But it has also warned against penalizing banks and arresting Nigerians who purchase the dollar with naira. Most of the blame for the naira s depreciation has been placed on BDCs and media outlets, while the CBN has blamed the Nigerian National Petroleum Company NNPC for failing to remit funds to the foreign reserve.