The Naira crashed in value on Thursday.
Naira exchanged between N405 and N420 to $1 in the Bureau De Change following the crash of crude oil in the international market.
Aminu Gwadabe, the President of the Association of Bureau De Change Operators of Nigeria, noted that the fall of crude oil in the market to as low as $35 per barrel caused unnecessary speculations among BDC operators.
“With the fall in oil crude oil prices on Monday, we witnessed a lot of foreign investors portfolio dropping their assets, most especially to convert to cash.
“The movement was as a result of recklessness on the side of the operators, when they want to speculate, but there is no reason for such because the Central Bank of Nigeria had continued to maintain support for liquidity to the BDC sub-sector,” he said.
He further noted that it was gradually returning back as it sold for N375 to $1 at the end of Thursday.
Gwadabe revealed that the Central Bank of Nigeria in a meeting with BDC operators on Thursday warned against contraventions, adding that the CBN had maintained N360 to a dollar for three years.
“When we woke up on Monday, the exchange was still about N360, but all of a sudden, because of the fall in crude oil price, people were panicky. Today, we still sold for up to N420 but the price was fluctuating,” he said.
Reacting to the incident, the CBN accused unscrupulous players in the foreign exchange market for the Naira crash. According to the apex bank these players had an impression that the CBN would devalue the Naira.
The CBN however noted that the rumours were false.
“These rumours are false, unwarranted and calculated to serve their dubious and selfish ends,” the apex bank stated.
“We have begun a robust and coordinated investigation in collaboration with the Nigerian Financial Intelligence Unit and related agencies to uncover the unscrupulous persons and FX dealers who are creating this panic, and the full weight of our rules and regulations will be meted out to them, including, but not limited to, being charged for economic sabotage,” it added.
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