The Association of Bureau De Change Operators of Nigeria, ABCON, has said that the naira would eventually trade at N415 to a dollar as the series of intervention by the Central Bank of Nigeria, CBN, are sustained.
Aminu Gwadabe, president of ABCON, speaking with the News Agency of Nigeria in Lagos on Tuesday, said that the new foreign exchange, forex, policy had eliminated frivolous demand for dollars among Nigerians.
Mr. Gwadabe said frivolous demand for dollar has been responsible for the weakness of the naira, adding that CBN’s continued intervention at the forex market would soon hit speculators and currency hoarders.
“Currency speculators and hoarders would suffer more losses as the CBN injects more dollars to the interbank market,” he said.
“The sustained intervention by the CBN will technically take speculators out of business.
“My expectation is that if both volumes and applicable exchange rates are reviewed for the BDC sub-sector, the naira would be trading at N415 to a dollar.”
The ABCON boss said that the CBN had recorded a huge success because of its new policy, adding that the naira had continued to strengthen at the parallel market, exchanging at N435 to a dollar.
He explained further that granting of more access to the BDCs at the International Money Transfer Services Operators window would help to further strengthen the naira against the dollar.
The CBN has injected over $1.5 billion since February when it started its intervention at the interbank market.
The apex bank said that its aim was to bring stability to the foreign exchange market and provide easy access of foreign currencies to businesses and individuals.
Earlier on Monday, an additional $180 million was injected into the market to meet bids for wholesale auction and requests for invisibles such as medicals, tuition and personal travel allowances.