Naira recovers despite deals by currency speculators
By Nation
The Central Bank of Nigeria (CBN) and Association of Bureaux De Operators of Nigeria (ABCON) are fighting to restore the strength and integrity of the naira.
The action of CBN and ABCON has caused naira, for the first time in several weeks, made marginal recoveries at the Investors’ and Exporters’ (I&E) Forex window and parallel market.
Currency speculators make spurious demand for dollar with hope to make good returns from the rising gaps between official and parallel market rates.
But the apex bank and ABCON are promising the illicit forex traders heavy losses in the coming months as the market gains more liquidity through CBN’s interventions and planned resumption of dollar sales to Bureaux De Change (BDCs).
The BDCs were temporary excused from the market following the economic lockdown and need to protect their members from being infected by the coronavirus.
The naira has appreciated to N385.94 at the Investors and Exporters (I&E) window, which was N0.56 against the dollar when compared to the N386.50 to a dollar.
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