Dr. Aminu Gwadabe has spoken regarding the status of the Nigerian Naira amid the prevailing illicit activities conducted by forex speculators. The head of the Association of Bureau De Change Operators of Nigeria (ABCON) assured the public regarding the measures implemented by the Nigerian government to resolve the matter at hand.
Nigeria is Africa’s most populous nation, and it has a very vibrant forex market. Hence, we believe that this news is very important, especially for our Nigerian readers.
According to the report posted online by Nigerian news media outlet ThisDay Live, the Nigerian Naira has faced pressure at the parallel market lately. The ABCON attributed this dilemma to currency speculators reportedly hoarding US dollars.
Moreover, the self-regulatory body and umbrella organization for the Central Bank of Nigeria (CBN)-licensed Bureaux de Change (BDC) operators mentioned that forex speculators had created a problem for the Investors and Exporters’ or I and E forex window.
Gwadabe cited that the CBN was committed to developing financing for more than 5,000 BDCs Nigeria-wide in a new measure to safeguard the Nigerian naira against forex speculators and deepen market liquidity. The ABCON president said that ongoing forex speculative behavior had hampered the market operations.
Furthermore, in his statement last weekend, Gwadabe relayed that the forex speculation perpetrators were making the artificial scarcity of the US dollar within the market to cause more issues for the Nigerian naira. He warned the forex speculators to stop their illegal activities.
Gwadabe also called for the return to normalcy in the financial markets. The ABCON head pointed out that the CBN-licensed BDCs and ABCON’s management would fight alongside the regulator to guarantee that forex speculators lose their capital if they persist in conducting their illegal activity.
He also advised BDCs not to join forex speculators that have created fragility and confusion in the market. Gwadabe assured the public of the continued supply of US dollars by the CBN.
He said that his group would continue to inform the Nigerian consumers and guide them accordingly regarding forex speculators. The ABCON president also urged all members to carry on supporting the CBN as a strategic ally and in the Nigerian economy’s interest.
At the parallel market, the Nigerian naira traded for N485 per US$1 last Friday, May 21. At the time of writing, US$1 is equivalent to N413.79. We support Mr. Gwadabe, his group, and the CBN with their measure to eradicate forex speculation. We believe that their latest step would be fruitful, considering that they want only what is best for the Nigerian people.