BDCs explains role of politicians, others in naira fall as exchange rate hits N860 at P2P market

Association of Bureaux De Change Operators of Nigeria(ABCON) has identify politicians and wealthy Nigerians as the driving force for the poor performance of Naira at forex exchange markets.

Aminu Gwadabe, the president of ABCON told Legit.ng that the the pressure in the forex market is driven by speculators who are benefiting from the high exchange rate.

He therefore called on the Central Bank of Nigeria to show more interest and interrogate the demands in the market.

Gwadabe said: "Volatility of naira is not because of purchase of dollars it is because of corruption.

"Some politicians, wealth Nigerians including foreign investors are attacking the market to keep dollar rate high.

"To do this they mop up dollars to keep the pressure high, with the challenge of Liquidity the market has less to satisfy the demands of customers"

CBN admits forex liquidity challenges

The comments from ABCON president comes as the CBN admits the challenge of liquidity in the forex markets.

Speaking after chairing its first Monetary Policy Committee meeting, Folashodun Shonubi, CBN's acting governor on Tuesday, July 25 said: "We agreed that one of the key challenges now was liquidity overhang, and we needed to look at various tools.

"The reality is that there's pent-up demand, which the current supply may not be sufficient for.

"As we ease and satisfy the pent-up demand, we begin to see more efficient markets that run smoothly.