The Association of Bureau de Change Operators of Nigeria (ABCON) has warned currency speculators to be wary as the naira strengthens further against the United States dollar.

ABCON President Aminu Gwadabe said the Central Bank of Nigeria (CBN) was set to inflict pain on currency speculators, adding that the naira’s rebound was due to the CBN’s “double-edged sword measures” of dollar liquidity injection and naira mopping through interest rate hikes.

Gwadabe said it was now a “great risk to speculate, hoard and substitute naira for other currencies.”

“What is happening in the market and the continuous naira rebound are the manifestations of the CBN double-edged sword measures of dollar liquidity injection and naira mopping through the instrumentality of interest rates hikes.

“It is a good development as it is (now) a great risk to speculate, hoard and substitute naira for other currencies.

“As we continue to observe developments, there is the need for caution in attacking the naira, as it all appears that the CBN has got the arsenal and the logic to continue to enshrine the success recorded,” Gwadabe declared.

ABCON also warned against attacking the naira, saying the CBN had the “arsenal and the logic” to continue to ensure its success.

The association noted that there had been “panic selling as against panic buying” in recent days.

ABCON called on the CBN to continue to make clarifications and implement some of the association’s recommendations, including including BDCs in the foreign exchange market.

Gwadabe said such inclusion would enable BDCs to meet the needs of the critical retail end sector and serve as a pass-through for the CBN’s foreign exchange rate policy.

He added that BDCs were necessary for the CBN’s demand measures, transaction monitoring mechanism, and clients’ utilisation with correcting and moderating potential.