Naira rebound sparks panic selling of dollar, BDC operators warn currency speculators

Impressive gains by the Nigerian currency, naira, have started giving currency speculators a nightmare, as the Association of Bureau de Change Operators of Nigeria (ABCON), have given hint of what it calls panick selling of the US dollar.

The association also warned currency speculators to be wary as the Naira strengthens further against the dollar.

The President of ABCON, Aminu Gwadabe gave the warning in a statement on Sunday evening, noting that the Central Bank of Nigeria was set to inflict pain on currency speculators.

Gwadabe said: “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.”

READ ALSO:Naira rebound continues, strengthens to N950/$1 as speculators rue N175 loss

It will be recalled that Naira had strengthened against the US dollar on Friday by 15.18 per cent to N950 per dollar in the black market from 1,120 per dollar it traded on Thursday.

Also at the official window, the dollar was sold for 783.67 compared to 807.27 per dollar on Thursday.

The naira regained its strength after the Central Bank of Nigeria started clearing 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, adding that there had been “Panic selling as against panic buying.”

ABCON, however, tasked the CBN to continue to make clarifications and implement some of their recommendations to include them in the foreign exchange market.

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