Foreign exchange (forex) speculators will in the coming months face over N10 billion losses as the Central Bank of Nigeria (CBN) and Association of Bureaux De Change Operators of Nigeria (ABCON) finalise plans to resume dollar sales to Bureaux De Change (BDCs) operators.
According to the Governor of the Central Bank of Nigeria (CBN), Godwin Emefiele, and the President of Association of Bureau de Change Operators of Nigeria (ABCON), Aminu Gwadabe, have also warned the currency speculators about the looming danger for their trade if they refuse to retrace their steps as they will incur losses estimated at over N10 billion in the next few months as the CBN prepares for BDCs return to the forex market after nearly six weeks of absence due to covid 19.
The Federal Government recently secured emergency $3.4 billion loan from the International Monetary Fund (IMF) under the Rapid Financing Instrument (RFI).
This fund will not only support Nigeria’s financial sector and address balance of payment hitches, but has boosted foreign reserves and financing to the budget for targeted and temporary spending increases.
Nigeria’s foreign reserves have reached over $37 billion, which represents enough buffers for the CBN to deal with any act of illegal economic behaviour like hoarding, speculation, conversion of local assets among other illicit financial activities. Gwadabe also added that the OPEC measures on sustainable price stability are commendable as many governments across the world have agreed to oil production adjustment targets and continued collaboration with all their partners, a move that will benefit Nigeria.
He said the CBN has also officially reviewed the naira exchange rate to N380 to a dollar. Aside devaluing the naira, the apex bank also adopted a unified exchange rate, and pushed the official rate of thenaira to N376 to dollar for International Money Transfer Operators rate to banks; N377 to dollar for banks’ dollar sale to CBN and pegged
CBN’s dollar sales to banks at N378, all aimed at attracting Foreign Portfolio Investment and strengthening the local currency. The BDC operators are expected to buy dollar from the CBN at N378 per dollar.