AbokiFX Suspends Exchange Rate Updates; Consequences of the repression of the CBN
Saturday, September 18, 2021 10:58 a.m. / by The Will / Header Image Credit: Aboki FX
AbokiFX, the website that quotes daily exchange rates against the naira, announced the temporary suspension of updates on its platform following serious allegations of currency manipulation, speculation and illegal transactions on the forex brought against him by the Central Bank of Nigeria, CBN.
Godwin Emefiele, governor of the CBN, had previously promised to sue founder Oniwinde Olusegun Adedotun after the regulator opened an investigation into Oniwinde’s company and activities and blocked bank accounts linked to them.
Emefiele alleged that Oniwinde and his company maintain 25 bank accounts in eight banks which are filled with money from his alleged speculative activities.
According to Emefiele, “the founder of AbokiFX is an illegal dealer with tens of millions invested in several Nigerian companies,” but pledged to find him in his UK home and prosecute him.
AbokiFX released the statement below following the CBN governor’s statement after the MPC decision briefings.
AbokiFX management decision
AbokiFX made the decision today, September 17, 2021, to temporarily suspend pricing updates across all of our platforms, until we get better clarity. The final prices were published tonight but the news section abokiFX and the Crypto prices section will still be active.
Who we are
AbokiFX was established in 2014 as a research and information service company, to conduct market research and collect data on parallel market rates.
We also wanted to bring a certain transparency around the parallel market with the availability of information technologies.
AbokiFX only provides benchmark information on parallel rates that helps guide our users in nearly 200 countries around the world.
abokiFX DOES NOT TRADE FX, which we have always maintained in our emails and social media platforms.
We do not trade currencies, nor do we have the power to manipulate rates because we DO NOT CREATE rates.
We are the only entity in Nigeria to offer a full set of parallel rates, since our inception in 2014 when the exchange rate was trading at N 166 to $ 1.
We gathered data for years before we started publishing, as we realized that the demand for our historical data was increasing.
For most of the users of our platforms, we are just a parallel pricing advice, but for many institutions, ranging from IVY League universities to global companies and research centers, we are a key source of data. , especially historical data (almost a decade of parallel rate data).
Companies use our data for their internal and external audits as well as for planning and budgeting.
We ONLY post what we get on the streets of Lagos, hence the term, Lagos Parallel Rates. The resulting rates are carefully collated, examined, and an average rate is published from the data pool. This explains our three daily updates – * Morning, ** Noon, *** Evening.
Sometimes rates come late, but we have to wait for all rates before releasing them, to avoid rate volatility. Page 2 of 2 None of our data source providers
None of our data source providers know who we are or what their rates are for. This is to avoid any manipulation of rates.
It is a daily routine for our staff to go to the market to collect the rates, as all BDCs across the country have their rates clearly displayed on their rate charts and the parallel market rate brokers freely provide information.
All we do is put all of this information together and post it daily across all of our platforms.
2017 vs 2021 replay
In 2017 Nigeria experienced a currency crisis and the Naira depreciated to over N500 / $ 1. abokiFX has been accused of manipulating parallel market rates. Once the cash was injected, the Naira appreciated and we released the appreciation, which is basically what we are doing. 2021 saw a similar scenario with the depreciation of the naira and we published what was given to us which has led some to believe that we are manipulating the market. However, no one can complain that our prices deviate by +/- 2% from the parallel market prices when they frequent the dealers in the market. If we don’t create the tariffs, then how can we control the tariffs. Our only sources of revenue have been our API and ad sales.
Allegations against our director
All the allegations against our manager have yet to be confirmed, but at abokiFX we do NOT trade FX or manipulate parallel market rates. Apart from the media allegation, we have not received any communication from any government agency and our accounts are not closed as stated in the media.
abokiFX is fully functional BUT we will not be posting any form of pricing on our platforms at this time. We sincerely hope that this suspension will lead to the appreciation of the Naira from next week. With our decision to temporarily suspend online pricing publication, we recognize that the visibility of parallel pricing information will be limited, which will impact decision making for many.
- Parallel market pressures: no end in sight?
- Parallel market rate at record high of N550
- Remittances to Africa set to decline in 2021
- Naira depreciated by 1.10% on WoW in the parallel market at an average exchange rate of 532.00 N
- Gross official reserves increased from US $ 610 million to US $ 34.02 billion in August 2021
- Total IEFX Transaction Value Decreased 4.86% to $ 629.34 Million
- Nigeria-China currency swap: still pending agreement
- BDCs Creative Currency Supply Sources Assessment, Parallel Market Rate Reaches N527
- A significant reduction in the use of foreign currencies
- Naira depreciated on the parallel market by -0.54% on WoW at N518.60 vs. N515.80
- Recent Currency Pressures: Storm Before Calm?
- The definitive guide to investing in the right order
- Best Forex Brokers: 5 Best Forex Trading Platforms
- Naira depreciated in the parallel market by -1.02% on WoW at N515.80 vs. N510.60
- NAFEX rate depreciated by -0.003% WoW to N411.17 from N411.16
- A sharp drop in the CBN’s currency supply
- Gross official reserves increased by $ 79 million to $ 33.4 billion in July 2021
- Expect increasing currency convergence in the coming months
- Naira appreciated 0.23% WoW in the parallel market at an average exchange rate of N510.80
- Examining the Impact of Exchange Rate Volatility in Nigeria