By Cedar Chris obuo
The president of the Association of Bureau De change operators has narrated why Naira is gaining strength.
Aminu Gwadabe narrated the reason in Lagos . Disclosing the reason behind Naira resurgence in strength against the dollars.
The development stems from the double edged sword dollar liquidity injected and the mopping up of the Naira through interest rate hikes”.
The association president Aminu Gwadabe said in a statement in Lagos what is happening in the market and the continue naira rebounds is the manifestation of CBN double -edged sward measure of dollars liquidity injection and naira mopping through instrumental interest rate hikes.
According to Gwadabe who said “it’s a good development as it’s a greater risk to speculate hoard and substitute Naira for others currencies”
The ABCON leader however, noted that speculators are primarily with assessing the sustainability of the progress made so far .He added that it’s now more of panic selling rather than panic buying.
Mr.Gwadabe urged the CBN management to persist in providing explanation and adopting some of the Associations suggestions to pave way for stability of Naira in the foreign exchange market.
He further recommended the involvement of BDCS on the foreign exchange market, recognizing their vital role in serving the requirements of essential retail sector.
The financial Analyst said that the national’s rising reserve can be attributed to the heightened demand for crude oil,which is it’s primary export commodity.
This is deu largely to the US increasing inventories and the excalation of tensions in the middle -East.He added.
“As we continue to observe developments there is need to take caution in attacking the Naira as it all appear that the CBN seems poised to sustain gains already recorded at the market. ” said Gwadabe .
