Business
Naira appreciates to N415/$1 after CBN’s intervention
The naira will trade at N415 to a dollar as the series of intervention by the Central Bank of Nigeria (CBN) are sustained, Alhaji Aminu Gwadabe has said.
Gwadabe, President, Association of Bureau De Change Operators of Nigeria (ABCON), told the News Agency of Nigeria (NAN) on Tuesday in Lagos that the new Forex policy had eliminated frivolous demand for dollar.
According to him, frivolous demand for dollar has been responsible for the weakness of the naira.
“Currency speculators and hoarders would suffer more losses as the CBN injects more dollars to the interbank market.
“The sustained intervention by the CBN will technically take speculators out of business.
“My expectation is that if both volumes and applicable exchange rates are reviewed for the BDC sub-sector, the naira would be trading at N415 to a dollar,’’ Gwadabe said.
The ABCON chief said that the CBN had recorded a huge success because of its new policy, adding that the naira had continued to strengthen at the parallel market, exchanging at N435 to a dollar.
He told NAN that granting of more access to the BDCs at the International Money Transfer Services Operators (IMTSO) window would help to further strengthen the naira against the dollar.
NAN reports that the CBN has injected over 1.5 billion dollars since February when it started its intervention at the interbank market.
The apex bank said that its aim was to bring stability to the foreign exchange market and provide easy access of foreign currencies to businesses and individuals.
The CBN had on Monday injected additional 180 million dollars since February when it started its intervention to meet bids for wholesale auction and requests for invisibles such as medicals, school fees and personal travel allowances.
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