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Naira rebounds, exchanges for 420/$, speculators count losses

The naira exchanged to the dollar at the parallel market at N420/$ on Wednesday, following the interventions made by the Central Bank of Nigeria in the Investors and Exporters window.

Prior to CBN’s renewed intervention in the I&E window on Monday, the naira exchanged for as high as N480 to the dollar.

Speculators in Nigeria’s foreign exchange market would count huge losses as the naira continued to surge against the dollar, experts have said.

The CBN had said that it would also resume the sale of foreign exchange to operators of Bureau de Change from September 7.

Speaking on the issue in a statement entitled, “Forex: Speculators set to count losses,” the Director, Corporate Communications Department at the CBN, Isaac Okorafor, said the bank had concluded plans to inject liquidity into the foreign exchange market by selling forex to licensed BDC operators.

He said the sale to BDCs would be gradual and be done twice a week, Mondays and Wednesdays, and that the BDCs had been directed to ensure that their accounts with their banks were adequately funded to ensure seamless transactions.

While warning speculators to desist from what he termed unpatriotic tendencies, Okorafor urged registered BDCs to comply with the CBN guidelines as the bank would not hesitate in sanctioning any erring dealer.

He also assured that those requiring foreign exchange for purposes of travel, educational fees and other invisibles could obtain such over the counter from their respective banks.

 

 

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