The Association of Bureau de Change Operators of Nigeria has warned those speculating on the currency to be wary as the Naira strengthens further against the United States dollar.
The President of ABCON, Aminu Gwadabe according to The Punch, 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 rate hikes.
“It is a good development as it is (now) a great risk to speculate, hoard and substitute naira for other currencies,” Gwadabe declared.
“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.
As of Friday, the local currency rose by 15.18 per cent to N950/$ in the black market from 1,120/$ the day before.
The naira reversed its weakening trend this year when the CBN began to clear the currency demand backlog in banks.
The association noted there had been panic selling as against panic buying and 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.
Alleluia is the Assistant Editor and Content Writer at LagosPost.ng. She is a prolific writer and editor, she has written features and news stories on Lifestyle, Sports, Business, Politics and B2B marketing. She is also an event coordinator, host and social media content creator.
