The naira has for the first time in several weeks made marginal recoveries at the Investors’ and Exporters’ (I&E) Forex window and parallel market. The modest appreciation of the local currency followed Central Bank of Nigeria (CBN’s) and Association of Bureaux De Change Operators of Nigeria (ABCON)’s prediction of heavy losses for currency speculators heating the forex market. The ABCON estimates that currency speculators will lose at least N10 billion in the coming months if they continue betting with their capital against the naira, writes
CURRENCY speculators are in the eye of the storm. After dragging the naira to its lowest position in decades and fueling rumours of further devaluation of the local currency, the Central Bank of Nigeria and Association of Bureaux De Operators of Nigeria (ABCON) are fighting back to restore the strength and integrity of the naira.CURRENCY speculators are in the eye of the storm.
ABCON President Aminu Gwadabe warned the currency speculators about the looming danger for their trade if they refuse to retrace their steps.
He predicted that they would incur losses estimated at over N 10 billion in the next few months as the CBN prepares for BDCs return to the forex market after nearly six weeks of absence due to the Coronavirus pandemic and need to protect operators.
He said with over 5,000 BDCs spread across the country receiving weekly allocations for sale to the retail end of the market, and rising accretion to the foreign reserves to over $37 billion, the naira’s future looks bright despite challenges posed by the currency speculators.