The Association of Bureaux Des Change Operators of Nigeria (ABCON) says Naira has continued to firm against the Dollar at the parallel market as date for CBN new currency introduction draws closer.
Alhaji Aminu Gwadabe, President, (ABCON), said this in
an interview with Newsmen on Wednesday
in Lagos.
“There is an observed growing return to sanity in the
parallel market as the deadline for the cancellation of the old notes and
introduction of the new notes in circulation come closer.
“The market is witnessing a dull moment as the spiral
volatility in the exchange rate of the local currency nosedived south west.
“Majority of the dealers are very cautious in quoting their
bid and offer rates to their clients,
who desperately want to upload their position in the market,” Gwadabe
told NAN.
The ABCON chief said the development became paramount as
demands for foreign currency were being diverted to commodity market.
He noted that a tonne of hibiscus (zobo) which was selling
for N500, 000 jumped to N1m per tonne.
“A bag of millet which was selling for N18,000 per bag now
sells for N24,000 per bag,” he said.
Gwadabe said that there were governance decisions made
outside the shores of Nigeria that were impacting the naira positively.
He said that reports that the U.S. would cease using
currency notes printed before year 2021 also helped the naira to rebound.
The ABCON boss said that the recent recall for foreign
assets of the Vatican back home and the Saudi Arabia diversification drive from
oil to renewable energy was pointing to a New World Order.
According to him, the new world order may likely lead to a
global financial distortion that will challenge the hegemony of the American
dollar.
“In the light of the above, we, therefore urge the CBN to
seize the positive trajectory to revisit the suspension of the Bureau De
Changes (BDCs) from accessing the designated official FX windows in the
ecosystem.
“ABCON also advises the CBN to continue with their crack
down on foreign exchange abuses in the market.
“It is also noteworthy for the CBN to liberalise Diaspora
remittance pick up agency and come up with new non export proceeds utilisation
to inject liquidity in the market,” Gwadabe said.
The financial expert urged the monetary and fiscal policy
authorities to work harmoniously to eliminate the fixed versus flexible
exchange rate framework to establish a market clearing price.
He said that such harmony was needed to usher in foreign
investments inflows and also discourage rent seeking, currency substitutions,
speculation and hording in the market.
He expressed the commitment of BDCs to friendly reforms and
preparedness to serve the transmission mechanism roles in foreign exchange rate
stabilisation in the economy.
“Finally, we want to thank our members for their
understanding and collaborations with the regulatory and security agencies in
ensuring the stability of our local currency despite the hash operational
environment,” Gwadabe said.
NAN reports that the naira on Wednesday flattened against
the dollar at the parallel market, exchanging at N790 to the dollar in Lagos.
The local currency gained N110 from exchanging at N790 on
Wednesday afternoon from N900 traded on Friday.
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