Dollar Exchange Rate: 'Why Naira is Appreciating Rapidly', Reno Omokri Shares

• Reno Omokri has alleged that supporters of a certain presidential candidate spread "the propaganda" that Nigeria's foreign reserves dropped because the Bola Tinubu administration abandoned the flotation of the Naira
• Legit.ng reports that Omokri said the reasons for the recent appreciation of the Naira are multifaceted
• Among other reasons, Omokri said the recent action against Binance by the national security adviser (NSA), Nuhu Ribadu, was responsible for the appreciating naira

Legit.ng journalist Ridwan Adeola Yusuf has over 9 years of experience covering economic matters.

FCT, Abuja - Reno Omokri, the former special assistant on social media to ex-President Goodluck Jonathan, has said contrary to views in some quarters, the naira is still being floated.

Omokri, in a recent post on his verified X (formerly Twitter) account, stated that the transfer of oil receipts from the Nigerian National Petroleum Corporation PLC to the Central Bank of Nigeria (CBN) is one of the contributing factors to the appreciation of the naira.

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The former presidential aide lambasted critics of the Bola Tinubu government, advising them not to allow their "hatred" for the president to turn them against Nigeria.

Omokri wrote on Wednesday night, April 10:

"I see supporters of a certain candidate spreading the propaganda that our foreign reserves dropped because the Tinubu administration has abandoned the flotation of the Naira and is now defending it, like previous administrations, and that is why the Naira is rising.

"You do not need to be a supporter of President Bola Tinubu to know that not only is this false, but it is an economically and intellectually lazy statement. I will now present the facts. I urge my readers to fact-check me."

He continued:

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"The reason why our foreign reserves dipped by slightly over a billion dollars is simply because, as the Central Bank Governor, Mr. Yemi Cardoso, himself publicly stated in a well-attended press conference, Nigeria recently cleared the backlog of foreign exchange allocations owed to foreign companies seeking to reinstate their profits from Nigeria, with the highest amounts going to foreign airlines, which gulped over a billion dollars.

"The naira is still being floated. The reasons for the recent appreciation of the Naira are multifaceted and include the following:

"The transfer of oil receipts from the Nigerian National Petroleum Corporation PLC to the Central Bank of Nigeria, which means the CBN does not have to wait months and even years to have large inflows.

"Payment of forex backlogs to foreign merchants, which means they do not have to source forex via banks through the I&E window, or the parallel market.

"The recent actions against Binance, the chief conduit for shorting the Naira, by the National Security Adviser, Mallam Nuhu Ribadu.

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"Revocation of the licensees of 4173 allegedly shady Bureau De Changes, which has reduced speculation against the Naira.

"And the recent increase in our oil production from about a million barrels per day to almost 1.5 million barrels per day, amongst others."

Omokri concluded:

"Listen, do not allow your hatred for Bola Tinubu to turn you against Nigeria. Your value is tied to Nigeria, not your political party or candidate."

What to read about the naira and dollar:

• "We expect": UK firm sets new exchange rate for naira against dollar
• Omokri predicts when naira will rise more against dollar
• “It is possible”: FG speaks on naira to dollar exchange rate, sets new target for 2024

"Dollar will sell below N1K" - Tinubu's govt speaks

Earlier, Legit.ng reported that Bayo Onanuga said going by the way the naira is gaining ground over the dollar, it "will be safe to predict" that the Nigerian currency "will sooner than later be trading below N1000 to a dollar".

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Onanuga, the special adviser on information and strategy to President Tinubu, said if that happens, it will be "a great rally compared to where it (dollar to naira exchange rate) was weeks ago".

Source: Legit.ng