ABCON chief predicts end to unstable forex market

The President of the Association of Bureau de Change Operators of Nigeria (ABCON), Alhaji Aminu Gwadabe, on Friday predicted an end to unstable foreign exchange rate, following Nigeria’s exit from recession.

Gwadabe told our reporter in Lagos that available economic indices and the Central Bank of Nigeria (CBN) forex policy were indications for a stable naira.

“Naira will definitely remain stable as all the indices will give the CBN the capacity to maintain stability.

“A rising foreign reserves of 31.22 billion dollars, the CBN is well positioned to sustain its interventions at the foreign exchange market.

“The foreign reserve is robust. There is enhanced fiscal discipline and increasing confidence of foreign investors in the economy and many empowerment programmes organised by the Federal Government,’’ Gwadabe said.

The financial expert noted that the expansion in the manufacturing sector as shown by data from the Purchasing Managers Index was also an indication of a growing economy.

It was reported that the naira had remained stable since the Sallah break, exchanging at N365 to the dollar at the parallel market.

The Nigerian economy exited recession after attaining 0.55 per cent growth in the second quarter.

Meanwhile, the CBN has injected over 3.6 billion dollars in series of interventions to the forex market in the past five months.