Currency traders, under the umbrella of the Association of Bureau De Change Operators of Nigeria (ABCON), have warned that forex speculators will resist the rapid appreciation of the naira as they try to recover their losses.
However, they have called on the Central Bank of Nigeria (CBN) to maintain the momentum of the naira’s strengthening and to take a firm stance against illegal activities such as currency speculation and substitution.
Aminu Gwadebe, President of ABCON, made these comments during an interview with the press, urging the CBN to engage Bureau De Change (BDC) operators more actively, especially in areas where market volatility is high. His remarks came after the naira experienced significant appreciation at both the official and parallel markets, following three consecutive days of gains since the CBN introduced the Enhanced Foreign Exchange Market System (EFEMS).
While the official market saw rapid improvements in the exchange rate, the parallel market, where forex is traded unofficially, presented a challenging scenario for speculators, as the naira was appreciating faster than they could sell.
Gwadebe noted that while the supply of foreign exchange has increased, demand remains weak, creating an imbalance in the market. He cautioned that this situation requires careful management to ensure stability.
The BDC sector, which had previously been excluded from certain foreign exchange activities, is now expected to play a more active role in meeting retail forex demand, helping to balance market accessibility with effective monitoring and control.
