Stability in exchange rate ‘will lead’ to appreciation of naira
Aminu Gwadabe, president, Association of Bureau De Change Operators of Nigeria (ABCON), on Tuesday expressed delight over the stability of the naira in the last two weeks.
In an interview with NAN, he said the stability in the naira exchange rate would eventually lead to its appreciation.
Gwadabe said some International Money Transfer Organisations (IMTOs) were on the verge of concluding plans with stakeholders in the forex industry to boost liquidity in the market.
The financial expert added that the stability been witnessed by the naira at the open market was an expression of the “ground work” done by the CBN, the BDCs and other stakeholders in the forex market.
He explained that the increase in the nation’s external reserves would also serve as a buffer in ensuring stability in the naira exchange rate.
“We are happy that the naira had remained stable for about two weeks running,” he said.
“This is attributable to many factors, including efforts by the CBN, the BDCs and the IMTOs to boost liquidity in the market.
“Many of these IMTOs have indicated interest in bringing their inflows into the economy, thus leading to the appreciation of the naira.”
The naira has remained stable for close to two weeks, exchanging at N498 to a dollar at the parallel market.
I hope our leaders will have the courage to do what is right. Let the Naira find its true value instead of injecting money into the FX market.
Until we move to a more productive economy, the Naira will keep struggling against the Dollar and other major currencies of the world.