The Association of Bureaux De Change Operators of Nigeria (ABCON) president Aminu Gwadabe, has responded to the prospect of the naira reaching N1,400 this week.
Since the Central Bank of Nigeria (CBN) launched the new electronic forex trading platform, the value of the naira, Nigeria’s currency, has been appreciating.
Last Friday, traders responded to the CBN’s new FX framework by offloading dollars, which caused the naira to rise to N1,515 per dollar on the parallel market.
According to CBN data, the naira also increased 2.08 percent, or N32, in the official market, closing at N1,535 as opposed to Thursday’s rate of N1,567.
BusinessDay reported that street currency traders are concerned that the dollar may appreciate to N1,400 this week, given its current trend.
Reacting to this, Gwadabe said,
According to Gwadabe, a number of reasons have contributed to the recent appreciation of the naira.
He cited a combination of market reforms, increased foreign exchange inflows, and investor confidence as the main forces behind the currency’s recovery.
He cited increased diaspora remittances and better crude oil and gas production, which have strengthened Nigeria’s foreign exchange reserves.
The FX Trading and Reporting System (EFEMS) was also acknowledged by Gwadabe with promoting accountability, openness, and visibility in the foreign currency market.
TimesNow.com.ng earlier reported that in order to lessen inflationary pressures, Bismarck Rewane, CEO of Financial Derivatives Company, has urged the Central Bank of Nigeria (CBN) to concentrate on stabilizing the naira and regulating the expansion of the money supply.
Speaking at the Parthian Group-hosted 2024 Macroeconomic Outlook Forum in Lagos, Rewane emphasized the discrepancy between the official and alternative exchange rates in Nigeria.
He pointed out that market speculation and limitations in FX supplies are to blame for the discrepancy.
Proofreading by James, Ojo Adakole, journalist and copy editor at TimesNow.com.ng.
Source: TimesNow.com.ng
