Saturday, November 23

Speculators Set to Suffer Losses as Naira Rebounds

By Dayo Omoogun

With the interventions made by the Central Bank of Nigeria in the Investors and Exporters (I&E) window of the foreign exchange market,

which has resulted in the appreciation of the Naira per dollar, speculators in the market may be headed for huge losses.

Speculators have had a field day, prior to CBN’s intervention on Monday, when the Naira fell to as low as N480 to the dollar. Following the intervention and the Apex bank’s announcement that it would resume sale of forex to Bureau de Change operators from Monday, September 7, 2020, the naira experienced a sharp turn around on Wednesday when it exchanged at N420 per dollar plunging spectators into agony.

Dr. Ozoemena Nnaji, the Director, Trade and Exchange Department, had on Thursday, August 27, 2020, announced the bank’s plan to resume the sale of foreign exchange to BDCs in it’s driving towards enhancing accessibility to foreign exchange.

The Director, Corporate Communications Department, Isaac Okorafor, also reiterated the stand while explaining further that the sale would be gradual and be done twice a week – Mondays and Wednesdays.

He stated that the BDCs had been directed to ensure that their accounts with their banks are adequately funded to ensure seamless transactions.
Okorafor warned speculators to desist from unpatriotic tendencies while urging registered BDCs to comply with the CBN guidelines in order to avoid sanctions.
He also added that those requiring foreign exchange for purposes of travel, educational fees and other Invisibles could obtain such over the counter from their respective banks.

The President of the Association of Bureau de Change Operators of Nigeria (ABCON), Alhaji Aminu Gwadabe has expressed support for the CBN action, stating that speculators in the forex market have been dealt a huge blow with the sharp drop in the exchange rate, which he said would continue on a downward trend with the resumption of international flights in and out of the country.

 

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