Currency Dealers Warn against Forex Speculation

Obinna Chima
The Association of Bureau De Change Operators of Nigeria (ABCON) has attributed the pressure facing the naira at the parallel market as well as the Investors’ and Exporters’ (I&E) forex window to currency speculators hoarding the United States dollars.

President of ABCON, in a statement at the weekend, however assured currency users of the continued supply of the greenback by the Central Bank of Nigeria (CBN), just as he warned speculators to desist from the act.

He said the CBN was committed to improving funding for over 5,000 BDCs nationwide in new move to deepen market liquidity and protect the naira against speculators.

He called for return of normalcy to the market, saying ongoing speculative behaviour was hampering the market operations.
He said the perpetrators were creating artificial scarcity of the greenback within market to cause more woes for the local currency.

The naira went for N485/$1 at the parallel market and N412/ $1 at the I&E Forex window on Friday.
Gwadabe said ABCON’s management and the CBN-licensed BDCs would fight alongside the regulator to ensure that speculators lose their capital should they persist in the illegal activity.

“The ABCON and CBN have observed with disdain the speculative behaviour currently beclouding the market with the misinformation that the CBN has adopted I&E window as its official rate. The above information is not true because as operators we still funded our accounts at our normal rates of N393/$ and not the I&E window rates for our operation this Friday,” he said.

He advised BDCs not to join the rumour mongers creating confusion and fragility in the market.
“ABCON Will continue to keep you posted and guide you accordingly. We urge all members to continue to give the CBN the utmost support as a strategic partner and in the interest of the economy,” he said.

He said CBN-licenced BDCs would continue to support the apex bank in tackling forex spectators and reiterating commitment to operate within set rules.

Gwadabe said the “Naira for Dollar Policy” being implemented by the CBN Governor, Godwin Emefiele would further lift market liquidity and improve naira status.
The policy, he added will provide Nigerians in the Diaspora with cheaper and more convenient ways of sending remittances to Nigeria and increase dollar inflows into the economy.