From Fred Itua, Abuja
Worried about the forex crisis in the country, the Economic and Financial Crimes Commission (EFCC), has raised a Special Task Force in all its Zonal Commands for the enforcement of extant laws against currency mutilation and dollarisation of the economy.
The Task Force, inaugurated by the Executive Chairman of the Commission, Ola Olukoyede, was raised to protect the economy from abuses, leakages and distortions exposing it to volatilities, a statement by the Commission’s spokesman stated.
Already, the Commission said it has made some arrests of perpetrators of issuance of invoices in dollars and mutilation of the naira in Lagos and Port Harcourt.
“Also, proprietors of private Universities and other institutions of higher learning charging fees in dollars have been invited by the Commission.
“The Commission is committed to the enforcement of all laws in place for the reflation and stimulation of the economy,” the statement further read.
Last week, the Central Bank of Nigeria (CBN), injected $500 million to clear outstanding foreign exchange backlogs.
The CBN also ordered Deposit Money Banks to sell their excess dollar stock latest February 1, 2024.
The CBN, which made the disclosure in a new circular, also warned lenders against hoarding excess foreign currencies for profit.
According to officials, the CBN said it believes some commercial banks hold long-term foreign exchange positions to enable them profit from the volatile movements of exchange rates.
The new circular introduces a set of guidelines aimed at reducing the risks associated with these practices.
In the circular titled, “Harmonisation of Reporting Requirements on Foreign Currency Exposures of Banks”, the CBN raised concerns over the growing trend of banks holding large foreign currency positions.
The circulated release, dated January 31, 2024, was signed by the Director, Trade and Exchange, CBN, Dr. Hassan Mahmud, and representative of the Director, Banking Supervision, CBN, Mrs. Rita Sike.
The circular read in part, “The Central Bank of Nigeria has noted with concern the growth in foreign currency exposures of banks through their Net Open Position (NOP). This has created an incentive for banks to hold excess long foreign currency positions, which exposes banks to foreign exchange and other risks.”