The naira has experienced a dramatic surge, rising 8.9% in one week, as it rallied from N1,672 to N1,535 per dollar in the official market. This appreciation, driven by the Central Bank of Nigeria’s (CBN) new Enhanced Foreign Exchange Market System (EFEMS), has caused significant losses for forex speculators. The parallel market mirrored this trend, with rates dropping sharply from N1,700 to N1,570, creating uncertainty among operators. Some Bureau De Change (BDC) operators expressed confusion over the rapid recovery, with one noting fear of further speculative losses.
Aminu Gwadebe, President of the Association of Bureau De Change Operators of Nigeria (ABCON), emphasized the role of EFEMS in fostering transparency and boosting market confidence. He called on the CBN to tighten regulations on illegal speculation and ensure inclusive policies that stabilize the foreign exchange market. Gwadebe also proposed a real-time, democratized exchange rate system to enhance market participation and accountability, underscoring the importance of maintaining liquidity and regulatory oversight.
The CBN’s recent measures, including consolidating FX windows and updating guidelines, have empowered licensed BDC operators to play a more active role in the market. This restructuring aligns with efforts to curb inefficiencies and allow the naira to reflect its true value. As speculators struggle to adapt to these rapid changes, ABCON has urged the CBN to sustain its interventions and maintain the naira’s recovery momentum.