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CBN CLAMPS DOWN ON FOREX ABUSE BY TRADERS

Doing business in the Nigerian cyber space has been considered by many as a risky business which can lead to serious debt if not properly done. There are various online platforms which can be employed by many to make money in Nigeria. However the vulnerability of the internet to be used by unscrupulous elements in Nigeria. Many people has been duped and unduly exploited in Nigeria through the online space over their inability to pick out these kinds of people who are only after exploiting people.

The Nigerian government in its bid to ensuring that the internet is safe for people to conduct or do business in Nigeria has put up various reforms and laws to curbing these shady deals on the internet. One of the many businesses on the internet which people especially the youths do to make cool cash and which is very lucrative is forex business.

Forex market can be explained to be the market place in which those involved buy, sell, interchange and venture on currencies. The Forex market is made up of money making corporations, banks, capitalizing bodies, verge resources and forex trading. Forex business is also regarded to as a money market by many other people. This is because it involves in a layman term the buying and selling of dollars on the international market. This is conducted online and you get to make huge amount of money if you have the right business or transaction knowledge on when to buy dollars and when to buy them. Several factors are involved in doing this which can be best taught by experienced and legal forex traders.

While this type of business is popular around the world and it is employed by many people to create wealth for them, many other have used this business to conduct shady deals. Many who are into cyber crimes have resorted to hiding under the cover of being a forex trader to transact illicit businesses in Nigeria. This is the case with many Nigeria youths who are into the popular, “Yahoo Yahoo” business where they hide under the category of people who are doing Forex to make business transactions using internet banking.

Curbing these illegal business trend which has marred doing business using the internet in Nigeria, the federal government of Nigeria recently stated that it has started moves to removing foreign exchange violation, abuse and other illicit practices by dealers which affects goods purchased by Nigerian consumers

This law was made in order to ensure and enforce the prudent use of the nation’s Forex resources, removing cases of over invoicing, transfer prices, double deals and other forms of abuses and violation in the system.

As reported on Naira metrics, the move was said to be a means to boost dollar liquidity and also have firm control over the system. The use of third parties or agents from buying Forex routed through Form M was banned and also it threatened to sanction exporters who do not repatriate proceeds of their transactions.

While this move is highly commendable over the incessant and rising cases of cyber fraud in Nigeria and abuses relating to doing business online especially when it comes to Forex.

There are many benefits that comes with  Forex trading in Nigeria and as the federal government of Nigeria works towards controlling this abnormalities in the system it must also encourage its teeming youths to use Forex as a viable business to making money instead of their tendency to using it engaging in cyber crimes.

The benefits that comes with Forex trading are as follows

Ability to buy and sell anytime- there is the luxury for its dealers and traders to buy and sell anytime within the week days. Although the risks are there however you get to trade anytime when you believe that the price of a currency pair is going up or down.

It can be done from home- this is a form of remote business which you can do by just sitting at home, without having to use an office space. Though there are people who does this kind of business formally as a corporate affairs, however individuals can trade on their own without having to go use create a workspace. All that’s needed to do this is to a personal computer, good internet connection and time.

Liquidity- The most liquid money market has always been the forex market. With high rates of dollars been traded daily and exchanged, traders and investors do not have to worry if their respective trade will be processed when trading any major currency which includes the dollar, Euro or British Pound.

Chances to making good profit- forex trading affords it’s traders the chance of making good business deals where they get to get good and high turnover. Although the risks are high as in every other business, forex is a viable option for making high turnover. It’s important that before you venture into this form of online business that you seek tutelage from experienced and well versed traders to put you through in doing this from of business the right way. Also when profits are made in foreign currencies especially the dollar, pound or Euro you get to earn higher when you change them to the local currency. Although this can be determined by the exchange rate

Access to the international market-forex gives the people who are into this form of business the access to the international market, in the process you get the access to currencies and commodities which you can trade with high leverage unlike the stock market. This implies that you can trade with larger sun of money than the capital used. When there is a good and proper risk management, the Forex market is very lucrative

Alternative Source of Income- Forex can be an alternative source of income for people as it has been advised by many economists that in the wake of the economic situation of Nigeria and the high cost of living in the country, having a double stream of income is a idea which many must consider as it a wise venture to do to achieve financial freedom

 

By Marcus Amudipe

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