Naira vs Dollar: Factors Influencing Nigerian Currency Rate
- The CBN has been commended for the recent stride of the naira against the dollar while being urged to maintain the momentum
- In an exclusive interview with Legit, Barrister Titilope Anifowoshe, a legal practitioner, explained the factors responsible for the recent progress made by the naira
- The legal practitioner cited the international market and investment in the Nigeria economy as major factors that influenced the naira
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Legit.ng journalist Bada Yusuf is an accomplished politics and current affairs editor, boasting over seven years of experience in journalism and writing.
An entrepreneur and a legal icon, Barrister Titilope Anifowoshe, has commended the recent rise of the naira against the dollar at the forex, stating factors for the growth of the local currency.
In an interview with Legit.ng, Anifowoshe explained the factors responsible for the growth of the local currency and advised the government on how to sustain the momentum.
Source: Twitter
According to Anifowoshe, the policies of the Central Bank of Nigeria (CBN), the international market and investment interests in the Nigerian economy are major factors responsible for the growth of the local currency.
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The legal luminary said:
“The recent appreciation of the Naira against the dollar is a positive development that reflects several factors contributing to its growth. One key factor is the Yemi Cardoso-led CBN's efforts to stabilize the currency through various policy measures and interventions. These efforts have instilled confidence in the Naira's value and contributed to its strengthening against the dollar.
“Additionally, external market conditions and global economic trends may play a role in Naira's growth. Changes in global demand and supply dynamics and shifts in investor sentiment towards emerging markets can impact currency exchange rates. Positive developments in the global economy may have created a conducive environment for the Naira to appreciate against the dollar.
“Furthermore, the Nigerian government's improved fiscal discipline and economic reforms have contributed to the Naira's growth. Measures to enhance revenue generation, reduce budget deficits, and promote economic diversification can improve overall economic stability and support currency appreciation.
“While the recent appreciation of the Naira is encouraging, it's important to remain cautious and monitor economic developments closely. A complex interplay of factors influences currency exchange rates, and fluctuations can occur in response to changes in domestic and international economic conditions. Therefore, continued efforts to strengthen Nigeria's economic fundamentals, attract foreign investment, and implement sound monetary policies are essential to sustain the Naira's growth trajectory in the long term.”
Naira vs dollar: Shettima commends Tinubu
Legit.ng earlier reported that Kashim Shettima, the vice president of Nigeria, praised President Bola Tinubu's leadership in managing the country's currency.
The vice president also expressed optimism that the dollar would still fall to the naira as the policy would continue to be effective.
Shettima said some people were celebrating when Tinubu removed the fuel subsidy and ensured the unification of the multiple exchange rate.
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Source: Legit.ng
