Impressive gains by the Naira have started giving currency speculators a nightmare, as the Association of Bureau de Change Operators of Nigeria (ABCON), gives hint of what it calls panic selling of the US dollar.
The association also warned currency speculators to be wary as the Naira strengthens further against the dollar.
The President of ABCON, Aminu Gwadabe, gave the warning through a statement on Sunday evening, noting that the Central Bank of Nigeria (CBN) is set to inflict pain on currency speculators.
Gwadabe said: “What is happening in the market and the continuous naira rebound are the manifestations of the CBN double-edged sword measures of dollar liquidity injection and naira mopping through the instrumentality of interest rates hikes.
“It is a good development as it is (now) a great risk to speculate, hoard and substitute naira for other currencies.”
The Naira had strengthened by 15.18 per cent against the US dollar on Friday, exchanging at N950 for a dollar in the black market from N1,120 per dollar it traded on Thursday.
Also at the official window, the dollar was sold for 783.67 compared to 807.27 per dollar on Thursday.
The Naira regained its strength after the CBN started clearing the forex demand backlog in banks.
“As we continue to observe developments, there is the need for caution in attacking the naira, as it all appears that the CBN has got the arsenal and the logic to continue to enshrine the success recorded,” ABCON noted, adding that there had been “Panic selling as against panic buying.”
ABCON, however, tasked the CBN to continue to make clarifications and implement some of their recommendations to include them in the foreign exchange market.