The Nigerian Association of Bureau de Change Operators has cautioned currency speculators to be cautious as the Naira appreciates further against the US dollar.
The PUNCH reported that the President of ABCON, Aminu Gwadabe, stated that the Central Bank of Nigeria was set to inflict pain on currency speculators.
“What is taking place in the market and the ongoing naira recovery are the results of the CBN’s two-pronged strategy of injecting dollar liquidity and using interest rate hikes to mop up the naira.
Gwadabe said, “It’s a good development because it’s risky to speculate, hoard, and use naira in place of other currencies right now.”
From trading at 1,120/$ the day before, the local currency gained 15.18% to N950/$ in the secondary market on Friday.
According to data on the CBN website, the dollar was sold for 783.67/$ in the importers’ and exporters’ FX window on Thursday, down from 807.27/$ on Thursday.
After the CBN began to clear the backlog of foreign exchange demand in banks, the naira reversed the declining trend it had been experiencing this year.
“Given the ongoing developments, we must exercise prudence when targeting the naira, as it seems that the CBN possesses the necessary resources and reasoning to sustain the documented achievements,” stated ABCON.
There had been “Panic selling as against panic buying,” according to ABCON.
In order to incorporate them in the foreign currency market, the BDC operators urged the central bank to keep providing clarifications and to carry out some of their proposals.
According to Gwadabe, BDCs would be able to fulfill their responsibilities of catering to the vital retail end sector because, “as they pose as pass-through effects of the central bank foreign exchange rate policy of stability and removing disparities in the overall market,” they would be able to do their jobs.
He continued, “The BDCs are essential for the demand measures of the top bank transaction monitoring system, as well as clients’ utilization with correcting and moderating potential.”