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Forex dealers lose N500m in forex speculation in one week

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Forex dealers lose N500m in forex speculation in one week

Following the new policy in the foreign exchange market, which directed commercial banks to open forex kiosks at airports and known shopping malls, hard currency traffickers were said to have suffered collective losses, estimated at more than N500 million in one week on speculation.

Mostly affected by the development were foreign currency dealers in Lagos and Abuja, who had hit losses since mid February 2017 when the Central Bank of Nigeria (CBN) announced it was pumping more than $400 million into the foreign exchange market.

A CBN official statement three days after its introduction of the new policy noted that the naira gained about 15 per cent, exchanging at N450 a dollar, from N520 at the parallel market, prior to the new directive.

Reports say the parallel market witnessed more entrance of operators since 2016 following continuous fall of the local currency over the dollar.

An operator, Mr. Zuka Alabi, the general manager of Abstex Company Limited, said his outfit went into currency market as part of its expansion programme.

“There is nothing wrong in going into any business so long as it is legitimate. It’s none of the dealers’ fault that naira has become a saleable commodity.

Read also: AMCON reverses self, unseals OAS premises

“But some of us seem to have burnt our fingers, given the huge losses that we have suffered in the past one week when CBN permitted commercial banks to compete with us by opening sales outlets outside their banking halls,” he said.

He confirmed that some of the operators borrowed funds, with high interest with which to buy enough foreign currencies, especially dollar, unknown that the apex bank would effect some radical changes through the system.

Other parallel marketers said they were still computing the actual losses that the new policy had left them with.

But CBN’s spokesman, Mr. Isaac Okoroafor, said with the exchange rate currently at N450 per dollar, naira had started appreciating in value, gaing N75 in just three days as a result of the new policy initiative by his bank.

However, analysts are quick to add that it is still too early to sing a victory song for the local currency until a permanent solution is found on ways to recharging the economy with foreign investments-induced foreign currency.

 

 

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0 Comments

  1. seyi jelili

    February 26, 2017 at 12:22 pm

    That’s good. Let them continue to lose until they desist from illegal dealings. How can they be selling dollar at #560 of which they bought at #360 making #200 gain on a dollar victimising business men. It is high time we did away with bureau De Change.

    • JOHNSON PETER

      February 26, 2017 at 2:09 pm

      I concur to your idea. Enough of black market in this country. CBN are now acting up now. We need to strengthening our Naira so our economy can be stimulated.

  2. Animashaun Ayodeji

    February 26, 2017 at 5:54 pm

    As far as I’m concerned, this is good news. It shows the new policy is now productive and reliable than the previous ones. We will get there, thanks to CBN

  3. Margret Dickson

    February 26, 2017 at 5:57 pm

    Just as the analysts have said, it is too early to start celebrating, we are not praying for another decline, but we need to watch the market for about a month if not more, to be sure we can trust the newly introduced policy of CBN.

  4. yanju omotodun

    February 26, 2017 at 9:05 pm

    Here comes what buhari could not do, osinbajo has done it better. Gone are days when buhari was feared but now emefiele fears osinbajo coz he is sound and knowledgeable, you can’t fool him on the state of the economy unlike the daft president buhari who understands nothing.

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