The Association of Bureau de Change Operators of Nigeria has warned currency speculators to be wary as the Naira strengthens further against the United States of American dollar.
President of ABCON, Aminu Gwadabe, the association 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 rebound 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 (now) a great 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 1,120/$ it traded the previous day.
The dollar was sold for 783.67/$ in the Importers’ and Exporters’ forex window, compared to 807.27/$ on Thursday, according to data on CBN website.
The naira reversed the depreciating trend it had witnessed this year after the CBN started to clear the forex demand backlog in banks.
“As we continue to observe developments, there is the need for caution in attacking the naira, as it all appears that the CBN has got the arsenal and the logic to continue to enshrine the success recorded,” ABCON noted.
The association noted there had been “Panic selling as against panic buying.”
The BDC operators called on the apex bank to continue to make clarifications and implement some of their recommendations to include them in the foreign exchange market.
Gwadabe said that such inclusion would enable BDCs to play their roles of meeting the needs of the critical retail end sector, “As they pose as pass-through effects of the central bank foreign exchange rate policy of stability and elimination of disparities in the overall market.”
“The BDCs are necessary for the demand measures of the apex bank transaction monitoring mechanism, and clients’ utilisation with correcting and moderating potential,” he added.