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BDCs caution forex speculators against mounting pressure on Naira

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The Association of Bureaux De Change Operators of Nigeria (ABCON) Wednesday warned members and speculators in the currency market to abstain from the practice of putting strain on the Naira or risk losing their money.

Aminu Gwadabe, the association’s president, announced yesterday in Lagos that the Bureaux De Change (BDCs), licenced by the central bank, would resume operations soon with the apex bank planning to start selling to operators any moment from now.

According to Mr Gwadabe, there are possibilities that the market will regain liquidity and boost trade once the bar on sales of forex is lifted, airports are reopened for flight services and movement restrictions are relaxed internationally.

“The return of over 5,000 BDCs to the forex market will add great strength to the naira and lead to major capital losses for forex speculators.

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“It happened in 2016 and will happen again in 2020. The return of the BDCs will immediately boost naira recovery and put the enemies of the economy to shame.”

He expressed the optimism that the resumption of BDC dealers would help contain escalating inflation and discourage speculators while boosting productivity and employment.

He noted that the CBN had deployed fiscal buffers after receiving $3.4bn Rapid Financing Instrument from the International Monetary Fund for the country to meet its balance of payment obligation in the aftermath of the coronavirus outbreak.

The facility would strengthen dollar reserves and help fund this year’s budget , Mr Gwadabe added.

Ronald Adamolekun

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Ronald Adamolekun

Ronald Adamolekun is a creative writer with a mixed bag of experience in fields as diverse as data journalism, financial reporting and editing.

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