Dealers canvass Naira stability as CBN’s interventions cripple speculators

Forex: CBN intervenes with another $210 million
CBN building
United Bank for Africa

Currency dealers under the aegis of Association of Bureau De Change Operators of Nigeria (ABCON), have said that the nation’s currency would remain stable in the months to come as the CBN sustained its interventions.

The President of ABCON, Aminu Gwadabe, on Thursday, stressed that the nation’s currency would remain stable in the months to come as the CBN sustained its interventions.

Gwadabe told journalists in Lagos that the sustained injection of liquidity to the nation’s foreign exchange market had paralysed the activities of speculators, adding that the recent trading of the naira against the dollar has shown that the true value of naira hovers between N360 and N365 at the parallel market.

To this end, the financial expert said that since the apex bank began aggressive intervention at the nation’s foreign exchange market, exchange rate spikes have disappeared into oblivion.

According to him, since the apex bank rightly recognised the critical role the BDCs were playing in exchange rate stability, the market started experiencing the convergence of rates across board, while recalling that towards the end of 2016 and early in the year, pundits held that the naira was already onboard the depreciation plane.

Gwadabe explained that it was not surprising to see the enemies of the naira brandishing several prophesies that the naira would exchange for about N1000 to the dollar, even as he described the calculated interventions of the apex bank since February as one of the greatest onslaughts to the camp of currency speculators in the recent past.

He explained that the apex bank had been taking the right decisions in opening various windows for meeting the several foreign exchange needs of Nigerians.

However, findings have revealed that following the liberalisation of the nation’s foreign exchange market, the CBN had injected an excess of $7.8 billion to the market and since the apex bank began its aggressive campaign against speculators, the naira had continued to appreciate from N520 to the dollar in February to around N365 to the dollar presently.

Though some finance experts have expressed concern on the sustenance of the CBN’s intervention, the CBN Governor, Godwin Emefiele, has left no one in doubt of the capability of the bank to drive its interventions to a logical conclusion.