The Association of Bureau de Change Operators of Nigeria (ABCON) has cautioned currency speculators as the naira continues appreciating against the US dollar.
ABCON President Aminu Gwadabe stated the Central Bank of Nigeria (CBN) is prepared to clamp down on speculators to support the naira’s rebound.
“The CBN has the tools and rationale to sustain the naira’s gains,” Gwadabe said. “It’s now very risky to hoard foreign currency or attack the naira.”
Gwadabe described the current market conditions as “panic selling rather than panic buying” of foreign currency. He advised caution in shorting the naira given the CBN’s aggressive defense.
The CBN has injected dollar liquidity while also hiking interest rates to tighten naira supply. This two-pronged approach has strengthened the local currency.
ABCON urged the apex bank to continue clarifying policies and include bureau de change operators to meet retail sector demand. Their inclusion enables better monitoring and moderation of forex utilization, Gwadabe noted.
The naira has rebounded following months of decline against major currencies. Analysts attribute the recovery to increased oil receipts and CBN interventions.
But currency speculators remain a threat and are warned against betting against the naira. The CBN appears ready to maintain its forex management policies supporting the local unit.
