Foreign exchange speculators are projected to lose over N100 billion in the next one month as the Central Bank of Nigeria (CBN) sustains massive funding for Bureaux De Change (BDC) operators.
Aminu Gwadabe, president, Association of Bureaux De Change Operators of Nigeria (ABCON), who disclosed this on Friday in Lagos, said the CBN is committed to improving funding for over 5,000 BDCs nationwide in a new move to deepen market liquidity and protect the naira against speculators.
He called for return of normalcy to the market as the ongoing speculative behaviour is hampering the market operations and stability will come at a huge loss to speculators.
The ABCON boss linked the continued fall of the naira at the parallel market and Investors’ and Exporters’ (I&E) Forex window to currency speculators hoarding dollars to profit from the currency crisis.
He said the perpetrators were creating artificial scarcity of the greenback to cause more woes for the local currency.
The naira on Friday May 22, exchanged N485/$1 at the parallel market and N411.25/ $1 at the I&E Forex window.
Gwadabe said the ABCON management and the CBN-licensed BDCs will fight alongside the regulator to ensure that speculators lose their capital should they persist in the illegal activity.
“The ABCON and CBN have observed with disdain the speculative behaviour currently beclouding the market with the misinformation that the CBN has adopted I&E window as its official rate. The above information is not true because as operators, we still funded our accounts at our normal rates of N393/$ and not the I&E window rates for our operation this Friday (last Friday),” he said.
The ABCON management, therefore, advised members not to embrace the speculative behaviour as the CBN is resolute with its partnership with the group and is looking at various options to induce liquidity in the sector.
“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 added that CBN-licenced BDCs were fighting back by supporting the apex bank in tackling forex spectators and reiterating commitment to operate within a set rules.
Gwadabe said the “Naira for Dollar Policy” being implemented by the CBN will 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.
The CBN governor, Godwin Emefiele recently stated a provision in the new circular on remittances that the bank introduced the rebate of N5 for every $1 of fund remitted to Nigeria, through International Money Transfer Operators (IMTOs) licensed by the central bank in order to incentivize the process of remittance.
