The Economic and Financial Crimes Commission (EFCC) is intensifying efforts to curb currency manipulation, particularly in the cryptocurrency market, to stabilize the Nigerian foreign exchange market.
A source within the EFCC emphasized the commission’s commitment, stating, “The EFCC is going after all currency speculators to stabilize Nigerian forex.” Furthermore, the commission is targeting not only Binance but also other cryptocurrency platforms involved in market manipulation.
Confirming the crackdown, EFCC spokesperson Dele Oyewale stated, “The commission is doing everything within the ambit of the law to ensure that there’s sanity in the Nigerian foreign exchange market.”
Analysts attribute the recent surge in the dollar against the naira to interbank activities by commercial banks. Agba Akin, a money market analyst, highlighted the trend, noting, “Since Wednesday, the dollar has started increasing again at BDC (Bureaux De Change). This is why. The emergency lovers of Binance are back speculating on other P2P apps.”
BDC operator Yasir Arafat criticized speculative manipulation, stressing its detrimental effects on market stability. He stated, “The problem with speculative manipulation is even if CBN keeps bidding dollars to BDC at a low rate, the prevailing speculated rate will lord over the market.”
Addressing misconceptions, Almustapha Muhammed, Adhoc Committee Chairman of the Association of Bureaux De Change Operators of Nigeria, clarified that the recent rise in the dollar was primarily due to interbank rates rather than actions by BDCs. He emphasized, “BDCs are parallel markets, while the banks are connected with the Federal Government’s official rate.”