ABCON Warns Against Forex Speculation

In a statement issued at the weekend, the President of the Association of Bureau De Change Operators of Nigeria (ABCON) has attributed the pressure facing the naira at the parallel market as well as the Investors’ and Exporters’ (I&E) forex window to currency speculators hoarding the United States dollars.

The President however assured currency users of the continued supply of the greenback by the Central Bank of Nigeria (CBN), just as he warned speculators to desist from the act.

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According to him, the Central Bank of Nigeria (CBN) was committed to improving funding for over 5,000 BDCs nationwide in a new move to deepen market liquidity and protect naira against speculators.

While calling for return of normalcy to the market, he stated that ongoing speculative behaviour was hampering the market operations. He affirmed that the perpetrators were creating artificial scarcity of the greenback within market to cause more woes for the local currency.

On Friday, the naira went for N485/$1 at the parallel market and N412/ $1 at the I&E Forex window.

Gwadabe said ABCON’s management and the CBN-licensed BDCs would 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,” he said.

He also advised BDCs not to join the rumour mongers creating confusion and fragility in the market, saying, “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 further stated that CBN-licenced BDCs would continue to support the apex bank in tackling forex spectators and reiterating commitment to operate within set rules.

Gwadabe said the “Naira for Dollar Policy” being implemented by the CBN Governor, Godwin Emefiele would further lift market liquidity and improve naira status.