“No More N1,000/$”: Currency Dealers Send Message to CBN as Naira Hits N1,175 Per Dollar
- Bureaux de Change operators have asked the CBN to involve them in its plans to strengthen the naira
- Aminu Gwadabe, President of the BDCs, said the current CBN leadership can achieve a stable currency
- He asked the apex bank to flush out the activities of unlicensed currency dealers in Nigeria to achieve a stable naira
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Aminu Gbadabe, President of the Bureau de Change Operators of Nigeria, has asked the Central Bank of Nigeria (CBN) and the federal government to carry the currency dealers along in their plans to stabilise the naira.
Gwadabe stated that achieving a stable, solid, and volatility-free exchange rate in Nigeria will need the complete participation of BDCs in the retail segment of the foreign exchange market.
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BDC operators can provide stability in the currency market
He said that under the current CBN leadership, Nigeria can achieve a robust and stable exchange rate and build a highly liquid foreign exchange market that aids the domestic economy.
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On the challenges facing Nigeria’s Forex market and the naira’s depreciation, Gwadabe said the situation requires the BDCs to provide solutions to the current volatility in the exchange rate market.
The BDC dealers’ boss said the continuous devaluation of the naira in both the official and black market is not to the benefit of the BDCs and the local economy.
He added that steps should be taken to reverse the fall and strengthen the naira for maximum impact on the economy.
The Naira plunges to its lowest in history
The naira hit N1,100 on Tuesday, October 17, 2023, and plunged to N1,175 per dollar on Thursday, October 19, 2023, in the black market.
The same day, the official market recorded its worst depreciation of N848 per dollar before strengthening to N790.80 on Wednesday, October 18, 2023.
On Thursday, October 19, the naira appreciated slightly, exchanging for N782 per dollar.
Gwadabe wants CBN to flush out currency speculators
Gwadabe revealed that the several measures by the CBN to plug the exchange rate gaps indicate genuine intentions to stabilise the exchange rate market.
However, he said involving the BDCs in the solution plan would bring the needed results.
According to Gwadabe, the BDC operators are worried about the development of the foreign exchange market.
Punch reports that Gwadabe asked the CBN to flush out unlicensed Forex dealers at the centre of speculative activities which attract a negative image to the operators.
"Nothing has changed": Naira continues downward slide after CBN promised to supply more dollars
Legit.ng earlier reported that five days after the CBN promised to intervene in the foreign exchange market, the naira was yet to recover at both the official and parallel markets.
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After hitting over N800 per dollar in the official market, Naira recovers to N790.68/dollar
Checks by Legit.ng reveal that the naira depreciated further in the parallel market, trading at about N1,049 to a dollar from N1,040 to a dollar, while it crashed to N1,280 to the British pound.
Analysts predicted that lifting Forex access on the 43 items previously banned by the CBN would ease pressure on the naira, but that is yet to reflect as more buyers flood the streets in search of the US greenback.
Source: Legit.ng
