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The Association of Bureau de Change Operators of Nigeria has issued a caution to currency speculators as the Naira continues to gain strength against the US dollar.
In a WhatsApp message sent by the President of ABCON, Aminu Gwadabe, the association emphasized that the Central Bank of Nigeria (CBN) is poised to take action against currency speculators.
Gwadabe explained, “What is happening in the market and the continuous rebound of the Naira are the results of the CBN’s dual approach of injecting dollar liquidity and mopping up Naira through interest rate hikes.”
This development has created a high-risk environment for those involved in speculation, hoarding, or substituting Naira for other currencies.
The Naira has strengthened by 15.18% to N950/$ in the alternative market on Friday, compared to the previous day’s rate of 1,120/$.
In the Importers’ and Exporters’ forex window, the US dollar was sold for 783.67/$, down from 807.27/$ on Thursday, according to CBN website data.
This reversal of the Naira’s depreciation trend this year can be attributed to the CBN’s efforts to clear the forex demand backlog in banks.
The ABCON highlighted the need for caution when dealing with the Naira, as it appears that the CBN has the tools and strategies to maintain its success.
The association noted a shift from panic buying to panic selling, indicating a positive trend.
BDC operators have called on the central bank to provide clarity and implement their recommendations to include them in the foreign exchange market.
Inclusion in the market would allow BDCs to fulfill their role in meeting the needs of the critical retail sector, aligning with the CBN’s foreign exchange rate policy of market stability and reducing disparities.
Gwadabe stressed that BDCs are vital for the demand measures of the CBN’s transaction monitoring mechanism and clients’ utilization while helping to correct and moderate potential issues.
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