Speculators lose N100m as CBN pumps dollars into interbank

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Foreign exchange (forex) speculators have lost over N100 million in the last three days after the Central Bank of Nigeria (CBN) injected fresh dollars into the interbank market.

Many of them panicked as news about the CBN’s intervention hit the market. This was in continuation of its strategy to strengthen the value of the naira.

According a source in the apex the bank, there is a planned release of an additional $350million bringing the total to $570 million in this week alone to further crash the value of the dollar.

Already, there are heightened fears among traders and other market participants who are yet to recover from the losses of the last two weeks owing to sharp and sudden appreciation of the Naira.

CBN’s Acting Director, Corporate Communication, Isaac Okorafor, confirmed this development, reiterated that with improving reserve levels, the Bank was determined to continuously make forex available to all genuine customers through their banks, advising those hoarding the greenback to reduce their losses by selling their dollar stock.

Market watchers said there was the likelihood of a liquidity glut as banks were beginning to send out salespeople to scout for customers to buy off their dollars to avoid losses arising from the expected further appreciation of the naira.

The CBN has in the last one week supplied a total of $570 million to the market made up of $80 million for Personal Travel Allowances, medical fees and school fees, $100 million in wholesale forwards, while another $350 million was injected into the interbank market at the weekend.

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