Expert Gives Conditions for Naira to Continue Gaining Against Dollar in All Markets
- Bismark Rewane, the CEO of Financial Derivatives Company Limited, has expressed hope for Nigeria's currency
- This came as the naira recovered big, closing at N1,382.35 per dollar on the official market on Thursday, March 21 2024
- The renowned economist advocated the need for the government to increase the amount of currency in circulation
Legit.ng journalist Zainab Iwayemi has over three years of experience covering the Economy, Technology, and Capital Market.
Financial Derivatives Company Limited's managing director/chief executive officer, Bismark Rewane, has said the naira will see brighter days.
Source: UGC
He said this after the naira gained, closing trade at N1,475 per dollar at the official Nigerian Autonomous Foreign Exchange Market as per the data from the FMDQ Securities Exchange on Wednesday, February 20 2024.
On Thursday, the naira increased in the official market to close at N1,382.35 per dollar.
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Rewane, who appeared as a guest on Channels Television on Thursday, asserted that the naira's appreciation is sustainable.
He said:
“The truth is that it is sustainable as long as you do several things. One is that interest rates have been increased; therefore, the propensity to save has increased, and the propensity to consume has reduced. People are consuming less and saving more if they are saving.”
The financial expert, however, expressed that he is unhappy with the government's management of resources.
The economist added:
“The government itself is consuming less and saving more. You heard that there is a travel ban.
“At the same time, there is a lot of waste in government, a lot of leakages in government and mismanagement of things.”
Rewane stated that the current administration needs to increase its efforts to increase the amount of money in circulation.
Although he acknowledged a lack of trust, he added that the government's policies should be consistent to foster citizen confidence.
He said:
“There is a need for new money; new money is a function of confidence. Confidence is a function of consistency in policy. These are the things that the administration has to come to terms with.
“We have a trust deficit in this country as policymakers. When we say today, the next day, we change. There is no consistency. The truth is that when people begin to see consistency, they stop panicking.
“When they stop panicking, they buy less in quantity but over a longer period. So you will now begin to see the prices of those commodities, even like diesel, which is now down to like N1,450”
In the view of Charles Abuede, a financial analyst, the onus lies on the monetary and fiscal authorities to put in place friendly policies to aid the management of the fx market.
"One thing is major and should be dealt with - crude oil production. If Nigeria can address insecurity and terrorism concerns, oil theft and pipeline vandalism, we can begin to see an increase in our crude oil production to above 2mbpd or even close to 2.5mbpd to aid the increase in fx receipt."
Presidency gives reasons naira is appreciating
Legit.ng reported that the presidency believes 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.
Ngelale noted that the clampdown on cryptocurrency trading platforms is "yielding fruits".
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Source: Legit.ng
