SFEM: Saboteurs at work

Economic saboteurs have resorted to forging invoices and tenders purportedly sent by business associates abroad and requesting advanced payment in foreign exchange for services that are never rendered.
Such false needs for foreign exchange have brought a lot of pressure to bear on the demand aspect of the Second-tier Foreign Exchange Market, SFEM, which have been largely contributory to high exchange rates.
The new wave of currency trafficking works this way, the local businessman would forge the letterhead of a reputable company abroad. He would then address a letter to himself praising his own company as highly creditable and worthy of doing business with the foreigner.
Armed with such a letter, he would then approach his bank as provided by the rules of SFEM, and make his tenders for foreign exchange.
To make sure his request is not faulted by his bank he would write series of reminders from the non existent foreign associate which would then awaken his bank s to the urgency and genuiness of his request.
Information reaching The Republic has it that a certain publisher based in Oyo State may be one such dubious businessman.

…Banks barred

Newly established banks that have not operated up to three years have been barred from SFEM bidding sessions.
This was contained in a directive issued by the Central Bank of Nigeria, CBN, in Lagos yesterday.
According to the directive some of the new banks that had been appointed previously as authorised dealers may continue with other foreign exchange transactions including selling and buying of foreign exchange to and from customer and other banks.
This is to be carried out strictly on funds acquired from autonomous sources.