As the naira begins to rebound in the parallel market, gaining N60 in two weeks, the Central Bank of Nigeria (CBN) has said speculators will count more losses as it begins weekly sales of forex.
“Speculators in Nigeria’s foreign exchange market are set to count huge losses as the Naira continues to surge against the dollar, following the interventions made by the Central Bank of Nigeria (CBN) in the Investors and Exporters (I&E) window,” it said in a statement.
BDCs want forex profit margin reviewed
Forex price drops to N455/$ as CBN sells to BDC from Friday
The bank said prior to the renewed intervention on Monday, August 31, 2020, the Naira exchanged for as high as N480 to the dollar, prompting fears that it was in a free fall.
However, the Naira began to rebound against the dollar following an announcement by the CBN that it would also resume the sale of foreign exchange to operators of Bureau de Change (BDCs) from Monday, September 7, 2020.
The Naira even exchanged for N420 to a dollar in the BDC segment of the market on Wednesday, plunging speculators into losses.
The spokesman of CBN, Isaac Okorafor, said the bank had concluded plans to inject liquidity into the foreign exchange market by selling forex to licensed BDC operators.
“The sale to BDCs would be gradual and done twice a week – Mondays and Wednesdays – hence the BDCs had been directed to ensure that their accounts with their banks are adequately funded to ensure seamless transactions.”
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