BDCs blame forex speculators, I&E window for naira’s slide on parallel market

Bureau De Change (BDCs) operators have blamed foreign exchange (forex) speculators for the pressure on the naira on the parallel market.

President of ABCON, Mr Aminu Gwadabe

The operators, under the aegis of the Association of Bureau De Change Operators of Nigeria (ABCON) also pointed accusing finger at the Investors and Exporters (I&E) forex window for the naira’s slide in trading at the exchange.

President of ABCON, Mr Aminu Gwadabe, in a statement, Monday, however, assured currency users of the continued supply of the American dollar by the Central Bank of Nigeria (CBN), just as he warned speculators to desist from the act.

According to him, the ‘Naira 4 Dollar’ policy being implemented by the CBN would further lift market liquidity and improve the status of the naira.

He said the CBN was committed to improving funding for over 5,000 Bureau De Change (BDCs) nationwide in a new move to deepen market liquidity and protect the naira against speculators.

He called for a return of normalcy to the market, saying ongoing speculative behaviour was hampering the market operations, adding that the perpetrators were creating artificial scarcity of the greenback within the market to cause more woes for the local currency.

Gwadabe said ABCON’s management and the CBN-licensed BDCs would fight alongside the regulator to ensure that speculators lose their capital should they persist in the illegal activity.

“The ABCON and CBN have observed with disdain the speculative behaviour currently beclouding the market with the misinformation that the CBN has adopted I&E window as its official rate.

“The above information is not true because as operators, we still fund our accounts at our normal rates of N393/$ and not the I&E window rates for our operation this Friday,” he said.

He advised BDCs not to join the rumour mongers creating confusion and fragility in the market.

“ABCON will continue to keep you posted and guide you accordingly. We urge all members to continue to give the CBN the utmost support as a strategic partner and in the interest of the economy,” he said.

He said CBN-licenced BDCs would continue to support the apex bank in tackling forex spectators and reiterating commitment to operate within set rules.

Gwadabe added further that CBN’s ‘Naira 4 Dollar’ policy will provide Nigerians in the Diaspora with cheaper and more convenient ways of sending remittances to Nigeria and increase dollar inflows into the economy.

The naira closed for N485/$1 at the parallel market and N412/$1 at the I&E Forex window last Friday.

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