The recent rebound in Naira, has been credited to the Central Bank of Nigeria (CBN) injection of dollar liquidity and naira mopping. The Association of Bureau de Change Operators of Nigeria (ABCON), made this known recently.
The President of ABCON, Aminu Gwadabe, said “What is happening in the market and the continuous naira rebound are the manifestations of the CBN double-edged sword measures of dollar liquidity injection and naira mopping through the instrumentality of interest rates hikes.
He further noted that “the Central Bank of Nigeria was set to inflict pain on currency speculators, warning them to be wary as the Naira strengthens further against the United States of American dollar. It is a good development as it is (now) a great risk to speculate, hoard and substitute naira for other currencies.”
Recall that the local currency strengthened by 15.18 per cent to N950/$ in the alternative market on Friday from 1,120/$ it traded the previous day. The dollar was sold for 783.67/$ in the Importers’ and Exporters’ forex window, compared to 807.27/$ on Thursday, according to data on CBN website. The naira reversed the depreciating trend it had witnessed this year after the CBN started to clear the forex demand backlog in banks.
Gwadabe said that such inclusion would enable BDCs to play their roles of meeting the needs of the critical retail end sector as they pose as pass-through effects of the central bank foreign exchange rate policy of stability and elimination of disparities in the overall market.