BDC operators caution currency speculators as naira gains
WithinnigeriaAug 29, 2023 6:01 AM

In a statement, the President of ABCON, Aminu Gwadabe, highlighted that the Central Bank of Nigeria is poised to take measures against currency speculators, potentially causing them financial distress
naira
The local currency strengthened by 15.18 per cent to N950/$ in the alternative market on Friday from 1,120/$ it traded the previous day
The dollar was sold for 783.67/$ in the Importers’ and Exporters’ forex window, compared to 807.27/$ on Thursday, according to data on CBN website
The Association of Bureau de Change Operators of Nigeria has issued a warning to currency speculators, cautioning them to exercise caution as the Naira continues to strengthen against the United States dollar.

In a statement, the President of ABCON, Aminu Gwadabe, highlighted that the Central Bank of Nigeria is poised to take measures against currency speculators, potentially causing them financial distress.

“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 rates hikes.

“It is a good development as it is (now) a great risk to speculate, hoard and substitute naira for other currencies,” Gwadabe declared.

The local currency strengthened by 15.18 per cent to N950/$ in the alternative market on Friday from 1,120/$ it traded the previous day.

The dollar was sold for 783.67/$ in the Importers’ and Exporters’ forex window, compared to 807.27/$ on Thursday, according to data on CBN website.

The naira reversed the depreciating trend it had witnessed this year after the CBN started to clear the forex demand backlog in banks.

“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.


The association noted there had been “Panic selling as against panic buying.”

The BDC operators called on the apex bank to continue to make clarifications and implement some of their recommendations to include them in the foreign exchange market

Fake news, no source at all, just blabbing lies upandan.

We all want thea Naira to strengthen but we will not achieve that with propaganda and Borrowing tp defend the Naira

SadiqBabaSani:
Fake news, no source at all, just blabbing lies upandan.

We all want thea Naira to strengthen but we will not achieve that with propaganda and Borrowing tp defend the Naira

but if the news is that the naira has gotten to 1500 u dingbats won’t bother to ask of the source shebi?

We already know u people for who u are

many igbos want the naira to loose value....

but the same igbos will come online complainin that its the goverments fault....

very mischievious people....

awon oloriburuku south east....

Today

Sharpsharp00123:
but if the news is that the naira has gotten to 1500 u dingbats won’t bother to ask of the source shebi?

We already know u people for who u are

They were already predicting N1,500 by December.

They were gloating all over the place and sending the messages containing the naira losing value everywhere

Do you know the surprising thing? The same people are not even sharing the news and posts about the naira gaining. They've moved to the next level of their pathetic whining and wailing.

Globad:


They were already predicting N1,500 by December.

They were gloating all over the place and sending the messages containing the naira losing value everywhere

Do you know the surprising thing? The same people are not even sharing the news and posts about the naira gaining. They've moved to the next level of their pathetic whining and wailing.

I can remember how the IPOBdients were always creating different threads about the naira. They are all nowhere to be found now

Ikaeniyan0:
I can remember how the IPOBdients were always creating different threads about the naira. They are all nowhere to be found now

But why is it not impacting on the price of fuel including goods and services?

GEJDHERO:
But is it not impacting on the price of fuel including goods and services?

I don't understand your question

Ikaeniyan0:
I don't understand your question

Why is this good fortune of rise of naira against dollars not impacting on the price of fuel ,goods and services

GEJDHERO:
Why is this good fortune of rise of naira against dollars not impacting on the price of fuel ,goods and services

Your question shouldn't be directed at me, it should be directed at the greedy people in the sector who will increase the price of goods on their shelves because dollar is rising

CBN must frustrate currency speculators. CBN must use monetary control measures, enact policy and share gazette to all banks to limit forex amounts held by Nigerians in domiciliary accounts, CBN must also ask for proof- documentation of what the dollar being requested from banks are to be used for. We must stop people from roundtripping of currency as a business... placing heavy VAT and other charges on forex demand, withdrawal and depositing, either on dollar payments will also help discourage round tripping. It's not patriotic to engage in currency speculation, a few can not gain to the detriment of the majority. You are unpatriotic if you engage in round tripping and currency speculation. Invest in a good business not a business that destroys our economy and currency value. Citizens of other nations don't do roundtripping or currency speculation as a business, it is economic sabotage.

Government must ensure big importers into Nigeria are compelled to build factories to produce their goods here, so they can use local materials, employ Nigerians and pay company tax to government