November 24, 2022
  • November 24, 2022

Forex speculators responsible for Nairobi crisis, ABCON says

By on May 31, 2021 0

By Collins Nweze, Lagos

Speculators are responsible for selling dollars above the exchange rate approved by the Central Bank of Nigeria (CBN) and increasing pressure on the naira against the dollar, the Association of Bureaux de Change Operators said yesterday. of Nigeria (ABCON).

ABCON President Aminu Gwadabe, who made the claim in Lagos, advised currency users to purchase dollars from CBN-approved Bureaux De Change (BDC) at the approved rate and to refrain from frequenting forex speculators.

The naira, which traded at N495 / $ on the parallel market remains at N410.25 / $ on the official market after the devaluation of the local currency by the CBN last week.

According to Gwadabe, forex speculators are capitalizing on the state of the forex market and the naira to sell dollars above the CBN-approved margin.

According to him, the activities of the parallel market have for years become the main drivers of exchange rates and the control of these transactions has become a burden.

He said only BDCs with a CBN license operate within regulatory guidelines and therefore should be attended.

Gwadabe said licensed BDCs, complaining about regulation and operating under international best practice, cannot sell the dollar to end users above the N2 per dollar margin set by the CBN to protect the naira against currency speculators and ensure the stability of the exchange rate.

The ABCON Executive Board said that ABCON continued to ensure that BDCs file their reports on time, conduct Know Your Customer (KYC) and due diligence reports as required by the umbrella bank.

ABCON explained that although BDCs are permitted to offer over-the-counter retail foreign exchange operations, they play a vital role in the economy and have contributed to the country’s economic development, such as ensuring order and confidence in the economy. foreign exchange market, providing data for monetary policy. , CBN intervention channels on the retail foreign exchange market and creation of more than 15,000 jobs among others.

The group has assured members of the public of its commitment to carry out retail foreign exchange transactions as defined and regulated by the umbrella bank.