Share
AbokiFX suspends operations over CBN Fx investigation
AbokiFX, a website that reports daily activities in the foreign exchange market, has suspended operations after the Central Bank of Nigeria disclosed that it is investigating its promoters for alleged illegal FX transactions and economic sabotage. Meanwhile, as the CBN prepares to launch the E-naira on the 1st of October, the apex bank has revealed that it will own a majority stake in its technical partner. Femi Oladehin, Partner, Investment Banking at Argentil Capital Partners joins CNBC Africa for more.
Mon, 20 Sep 2021 12:09:44 GMT
Disclaimer: The following content is generated automatically by a GPT AI and may not be accurate. To verify the details, please watch the video
AI Generated Summary
- AbokiFX's suspension following CBN investigation raises concerns about transparency and market access
- Debate on the impact of AbokiFX on exchange rates highlights the need for consistent policies and long-term planning
- Call for reforms in the Nigerian FX market to address supply-demand imbalances and restore investor confidence
AbokiFX, a popular website known for reporting daily activities in the foreign exchange market, has recently suspended its operations following an investigation by the Central Bank of Nigeria (CBN). The CBN has accused the promoters of AbokiFX of engaging in alleged illegal FX transactions and economic sabotage. This development has led to a significant disruption in the Nigerian FX market as investors and traders rely heavily on AbokiFX for up-to-date exchange rate information. As the CBN gears up to launch the E-Naira on October 1st, it has been revealed that the apex bank will have a majority stake in its technical partner, raising questions about the future of the FX market in Nigeria. Familar Day, a Partner in Investment Banking at Argentil Capital Partners, provided insights into these recent developments during an interview with CNBC Africa. The discussion shed light on the implications of AbokiFX's suspension and the broader challenges facing the Nigerian currency market. One of the key points raised during the interview was the debate around the role of AbokiFX in influencing exchange rates. While some argue that the website simply reports on rate movements, others believe that it plays a significant role in shaping market perceptions. Familar Day emphasized the need for Nigeria to attract more foreign investment and boost export activities to strengthen the Naira. He criticized the CBN's approach to managing the exchange rate, pointing out the lack of consistency and long-term planning, which undermines investor confidence. The interview also touched on the CBN's directive that only authorized entities can publish daily exchange rate data. This move has sparked controversy within the financial community, with concerns raised about transparency and market access. Familar Day highlighted the challenges faced by businesses in accessing foreign exchange for essential transactions, citing examples of delayed payments and liquidity issues. He called for a more pragmatic approach to addressing the supply-demand imbalance in the FX market to restore stability and enhance economic growth. Overall, the suspension of AbokiFX has underscored the need for a comprehensive reform of Nigeria's currency market to promote transparency, efficiency, and investor confidence.
SIGN UP FOR OUR NEWSLETTER
DAILY UPDATE
Get the best of CNBC Africa sent straight to your inbox with breaking business news, insights and updates from experts across the continent.
Get this delivered to your inbox, and more info about about our products and services. By signing up for newsletters, you are agreeing to our Terms of Use and Privacy Policy.