Foreign exchange traders suspect a foul play in market exchange rate of Naira/Dollar, as trading falls to a low of N460/$1 despite the Naira depreciation.
Exchange traders at the official investor and exporter window are concerned about the persistence of forex trading at intraday lows of roughly N460-N465/$1, suspecting foul play and market manipulation.
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The naira/dollar exchange rate ends at N763/$1 but has intraday lows of N467/$1 and highs of N841/$1, causing substantial discrepancies and raising concerns among dealers.
While some of the trades may be related to leftovers from past regulations, traders and analysts believe that the protracted duration of these disparities warrants scrutiny, and regulators are prepared to initiate an investigation if the trading disparities persist into July.
Foreign exchange traders at the official investor and exporter window have expressed concern over the currency’s sustained trade at an intra-day low of around N460-N465/$1.
The naira/dollar exchange rate finished at N763/$1 on Tuesday, June 27th, 2023, although it had an intra-day low of N467/$1 and an intra-day high of N841/$1.
According to sources, the substantial gap between intra-day highs, intra-day lows, and closing rates has made traders suspicious, with some fearing foul play.
Investigations have proven that these trades are genuine, as some individuals have purchased currency at intraday lows and highs, raising further suspicions.
A trader expressed alarm over the intra-day lows of N460 which diverge greatly from the closing price of N763, pondering, “Who is selling if someone is buying at N463/$1?” They also wondered why such low prices remained even after ten trade days.
A foreign currency market specialist explained why the exchange rate is still being sold at roughly N460/$1, even two weeks after the foreign currency market was revised.
These deals, according to the expert, are the remains of the previous RT 200 policy, which was in effect before the central bank changed the market regulations, effectively canceling it.
Some of the contracts, however, had already been agreed upon, forcing their settlement.
The continuous concerns among foreign currency traders about the investor and exporter window’s chronically low exchange rates underline the need for further research.
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While some trades may be related to leftovers from prior programs, the long length of these differences raises concerns about suspected market manipulation.
It is critical for market transparency and stability that any suspected wrongdoing is dealt with quickly, guaranteeing a fair and stable foreign currency market for all participants.
