Forex speculators post heavy losses as naira rebounds

The naira yesterday made a significant gain of N175 to dollar at the parallel market.

The naira rebound happened about 24 hours after the Supreme Court judgment affirming President Bola Ahmed Tinubu’s victory at the 2023 Presidential elections.

The local currency, which exchanged at N1,315 to the dollar at the parallel market on Thursday, closed yesterday at N1,140 as speculators dumped dollar at willing buyers.

A Bureaux De Change (BDC) trader based in Marina, central Lagos, Garuba Sarki, said many dealers lost huge funds as they sold below purchase rates.

“I know some BDC operators that sold dollars below the purchasing rate. This is expected to continue in the weeks ahead. Also, the expected $10 billion inflows to the economy will help strengthen the naira position against the dollar,” he said.

Sarki said funding for BDCs or getting the banks to sell dollars to retail end buyers will boost dollar liquidity and bring greater mileage to the naira.

“The banks are not selling dollars and the BDCs have been incapacitated. But I see these two scenarios changing in the coming weeks, and those that have hoarded the dollars are gradually releasing them,” he stated.