Dollar speculators abandon positions, lose over N45 billion

Dollar and other foreign currencies speculators have abandoned their positions with huge losses in the neighbourhood of N45 billion. This is according to a report by Economy Editor of Vanguard, Emeka Anaeto.

According to him in the said report, ” wave of political pressures may have forced the emergence of a new order in the nation’s foreign exchange market even as currency speculators abandon their positions with losses going up to N45 billion and lose more.”

“Inter-bank interest rates have also spiked to all time high with potent threat to other interest rates including lending.”

“Nigeria’s local currency, Naira, appreciated to a 14-week high of N455/USD1 yesterday in the parallel market segment of the currency market at the backdrop of a week old new foreign exchange market measures rolled out previous weekend by the Central Bank of Nigeria, CBN.”

“The new exchange rate erased the depreciation recorded since November 15, 2016 when the parallel market rate closed on average N456/USD1.”

“The appreciation trend began on Tuesday last week after initial resistance to the measure and a high point depreciation to N520/USD1. But Vanguard learnt that the apex bank forced its policy objectives through with massive injection of USDollar on both forward contract and spot market including direct retail sales.”

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