Presidency Gives Real Reasons Naira Exchange Rate to Dollar Is Closer to N1,300/$1
- The presidency has stated that the improvement is the fruit of the clampdown on cryptocurrency platforms such as Binance
- To sustain the good run, the federal government is asking Nigerians to ensure they patronize made-in-Nigeria goods
- In a chat with Legit.ng, economist Chuks Amobi does not agree with the FG's persuasion for Nigerians to patronise made-in-Nigeria products
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Legit.ng journalist Dave Ibemere has over a decade of experience in business journalism and in-depth knowledge of the Nigerian economy, stocks, and general market trends.
The presidency believes that the clampdown on some cryptocurrency trading platforms has helped the naira stabilise in the foreign exchange markets.
Ajuri Ngelale, the special adviser to the president on media and publicity, stated this while speaking to journalists in Abuja on Friday, March 22, 2024, in reaction to the naira exchanging close to N1,300 per dollar.
Source: Getty Images
Legit.ng reported earlier that the Nigerian government accused cryptocurrency trading platforms of manipulating the value of the naira in the forex market.
After that, the government launched a clampdown on trading platforms, especially Binance.
FG on naira
Ngelale noted that the clampdown on cryptocurrency trading platforms is “yielding fruits”.
He also revealed that President Bola Tinubu has approved several interventions to strengthen the naira further.
His words:
"We want every naira and kobo we earn to be more valuable, not just here but when we travel abroad.
"The president has approved series of intervention to actualise mass strengthening of the naira against all other global currencies.
“The efforts that Mr President has put in place with collaboration with other agencies of government, as well as the Central Bank of Nigeria, in dealing decisively with sharp practices on certain cryptocurrency trading platforms and sharp practices within the parallel market of the foreign exchange ecosystem are now yielding fruits.”
Ngelale further urged Nigerians to report any sharp practices in the foreign exchange market and buy made-in-Nigeria products to strengthen the naira, TheCable reports.
He added:
“Mr President appeals to Nigerians to actively and intentionally make the decision, everyday to patronise made-in-Nigeria products and services across the board.
He also wants to ensure that Nigerians fully understand that the momentum that we are now seeing, with respect to the strengthening of our currency, will not slow down.
Economist reacts
Chuks Amobi, a Lagos-based economist, reacting to the presidency's comments on Nigerians buying made-in-Nigeria products, told Legit.ng that the reality is different despite how noble it sounds.
His words:
"Nobody anywhere in the world go to the market to make purchase out of patrotism but to satisfy thier needs
"Politicians can't ask people to buy made in Nigeria while drive foreign cars, visit foreign hospitals and also send thier children abroad to study.
"Nigerian government should focus on providing the neccessary support and enviroment to make Nigerian-made products cheaper, available, and have better quality than foreign products, and the market will respond."
Naira to dollar exchange rate nears N1,300/$
Earlier, Legit.ng reported that there are indications that the naira might soon strengthen to N1,300/$.
Data from the Nigerian Autonomous Foreign Exchange Market (NAFEM) shows the official traders sold the dollar at N1,382.35 on Thursday, March 21.
While on the peer-to-peer platform, the exchange rate was N1,200 for USDT.
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Source: Legit.ng
