Forex: Speculators to lose N100bn as CBN sustains funding for BDCs

By SUNDAY OJEME

Foreign exchange speculators will lose over N100 billion in the next one month as the Central Bank of Nigeria (CBN) sustains massive funding for Bureaux De Change (BDC) operators. President, Association of Bureaux De Change Operators of Nigeria (ABCON), Alhaji (Dr.) Aminu Gwadabe, who disclosed this on Friday in Lagos, said the CBN was committed to improving funding for over 5,000 BDCs nationwide in new move to deepen market liquidity and protect the naira against speculators. He called for return of normalcy to the market as the ongoing speculative behaviour hampering the market operations and stability will come at huge loss to speculators. The ABCON boss linked the continued fall of the naira at the parallel market and Investors’ and Exporters’ (I&E) forex window to currency speculators hoarding dollars to profit from the currency crisis.

He said the perpetrators were creating artificial scarcity of the greenback within the market to cause more woes for the local currency. The naira was on Friday, exchanging at N485/$1 at the parallel market and N411.25/ $1 at the I&E forex window. Gwadabe said the ABCON 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.

The ABCON management, therefore, advised its members not to join on that behaviour as CBN remained resolute with its partnership with the group and is looking at various options to induce liquidity in the sector. He advised BDCs not to join the rumour mongers creating confusion and fragility in the market. “ABCON Will continues 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 said. He said that CBN-licenced BDCs were fighting back by supporting the apex bank in tackling forex spectators and reiterating commitment to operate within set rules. (Saturday Telegraph)