Following the intervention made by the Central Bank of Nigeria in the Investors and Exporters window, the Naira exchanged to the Dollar at the parallel market at N420/$ on Wednesday.
Prior to this renewed intervention, the naira exchanged for as high as N480 to the dollar. As the naira continued to surge against the dollar, speculators in Nigeria’s foreign exchange market would count huge losses, experts said.
Speaking on this issue, the Director, Corporate Communications Department at the CBN, Isaac Okorafor, said in a statement entitled, “Forex: Speculators set to count losses,” the bank had concluded plans to inject liquidity into the foreign exchange market by selling forex to licensed BDC operators.
He said the sales to BDCs would be gradual and be done twice a week, Mondays and Wednesdays, and that the BDCs had been directed to ensure that their accounts with their banks were adequately funded to ensure seamless transactions.
While warning speculators to desist from what he termed unpatriotic tendencies, Okorafor urged registered BDCs to comply with the CBN guidelines as the bank would not hesitate in sanctioning any erring dealer, and assured that those requiring foreign exchange for purposes of travel, educational fees and other invisibles could obtain such over the counter from their respective banks.