Dollar Speculators In Agony As Naira Climbs

By Emmanuel Aziken

The Nigerian currency, the naira was on Monday taking the unusual route of gaining big against the dollar as the BDC operators await the imminent return of supplies from the Central Bank of Nigeria, CBN.

The CBN is expected to start supplies to the BDCs next Monday following the announcement by the apex bank last Thursday of the return of CBN supplies to the parallel market dealers.

The impact of the directive came with the naira gaining N7 between Friday and Monday as the naira rose from N477 to N470 to the dollar.

The gain was also being traced to the dumping of dollars by hoarders and speculators who had piled dollars in expectation of the currency gaining more against the local currency.

With the pressure on the naira arising from the CBN’s dry tap to the BDCs and the lockdown, the naira had slipped over the last few months.

The naira is now expected to gain against the dollar as the CBN drives towards achieving a convergence of the multiple rates now prevailing in the markets.

Market sources, however, say that the impact of the CBN resupply has been marginal on the British Pound which remained constant at last Friday’s N595 to the British Pound.

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