Nigerian currency rebounds as introduction of new notes draws closer
Economy Stocks / Money Market

Nigerian currency rebounds as introduction of new notes draws closer

The Association of Bureaux Des Change Operators of Nigeria (ABCON) says the nation’s currency, Naira, has continued to firm against the Dollar at the parallel market as date for the introduction of new currency notes draw nearer.

Alhaji Aminu Gwadabe, President (ABCON), told newsmen on Wednesday in Lagos that there is growing return to sanity in the parallel market as the deadline for the cancellation of the old notes and introduction of the new notes in circulation, the Central Bank of Nigeria (CBN) come closer.

“The market is witnessing a dull moment as the spiral volatility in the exchange rate of the local currency nosedived south west.

“Majority of the dealers are very cautious in quoting their bid and offer rates to their clients, who desperately want to upload their position in the market,” Gwadabe said.

The ABCON chief said that the development became paramount as demands for foreign currency were being diverted to commodity market.

Gwadabe said that there were governance decisions, made outside the shores of Nigeria, that were impacting the naira positively.

“The reports that the U.S. would cease using currency notes printed before year 2021 also helped the naira to rebound,” he said.

The ABCON President said that the recent recall for foreign assets of the vatican back home and the Saudi Arabia diversification drive from oil to renewable energy was pointing to a New World Order.

According to him, the new world order may likely lead to a global financial distortion that will challenge the hegemony of the American dollar.

“In the light of the above, we therefore, urge the CBN to seize the positive trajectory to revisit the suspension of the Bureau De Changes (BDCs) from accessing the designated official FX windows in the ecosystem.

“We also advises the CBN to continue with its crack down on foreign exchange abuses in the market.

“It is also noteworthy for the CBN to liberalise diaspora remittance pick up agency and come up with new non export proceeds utilisation to inject liquidity in the market.”

The financial expert urged the monetary and fiscal policy authorities to work harmoniously to eliminate the fixed versus flexible exchange rate framework to establish a market clearing price.

He said that such harmony was needed to usher in foreign investments inflows and also discourage rent seeking, currency substitutions, speculation and hording in the market.

He expressed the commitment of BDCs to friendly reforms and preparedness to serve the transmission mechanism roles in foreign exchange rate stabilisation in the economy.

“Finally, we want to thank our members for their understanding and collaborations with the regulatory and security agencies in ensuring the stability of our local currency despite the hash operational environment,” Gwadabe said.

The Naira, on Wednesday, flattened against the dollar at the parallel market, exchanging at N790 to the dollar in Lagos.

The local currency gained N110 from exchanging at N790 on Wednesday afternoon from N900 traded on Friday.



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