Naira – Dollar: BDC Operators Warn Speculators

Punch Newspaper

The Association of Bureau de Change Operators of Nigeria has warned those speculating against the naira to be wary.

The President of ABCON, Aminu Gwadabe, gave the warning in a WhatsApp message sent to The PUNCH on Friday.

He noted that the Central Bank of Nigeria was set to inflict pain on currency speculators.

“What is happening in the market and the continuous naira rebounds are the manifestations of the CBN double-edged sword measures of dollar liquidity injection and naira mopping through the instrumentality of interest rates hikes.

“It is a good development as it is a greatest risk to speculate, hoard and substitute naira for other currencies,” Gwadabe declared.

The local currency strengthened by 15.18 per cent to N950/$ in the alternative market on Friday from N1,120/$ it traded the previous day.

The dollar was sold for N783.67/$ in the Importers’ and Exporters’ forex window, compared to N807.27/$ on Thursday, according to data on the CBN website.

Muhammad, added, “The naira is falling drastically. It is still failing. It is N970 now. The difference between buying and selling is N10.”

The President of the Association of Bureaux De Change Operators of Nigeria, Aminu Gwadabe, affirmed to The PUNCH on Thursday that the CBN’s move to clear some of its backlog has been responsible for the firming of the naira.

He said, “Yes, this is because of the CBN’s move to clear its backlogs. There is a kind signal in the market. The CBN should continue to make clarifications.”

On Thursday, The PUNCH reported that the apex bank of the country had commenced the payment of outstanding matured FX forwards owed to various creditors.

Unconfirmed sources noted that three banks, namely Citi Bank, Stanbic IBTC, and Standard Chartered Bank, received full payment of debts owed from the CBN.