Naira’s Rebound: ABCON Credits It to CBN’s Dual Approach of Dollar Liquidity Injection and Naira Mopping

The Naira’s recent strength against the US Dollar is attributed to the Central Bank of Nigeria’s (CBN) measures to increase dollar liquidity and mop up excess Naira through interest rate hikes.

The President of the Association of Bureau De Change Operators of Nigeria (ABCON), Aminu Gwadabe, explained that this approach is aimed at reducing speculation, hoarding, and currency substitution.

Gwadabe emphasised that speculators are closely watching the sustainability of the Naira’s rebound and suggested that it is panic selling rather than panic buying.

He called on the CBN to continue making clarifications and implementing the association’s recommendations to ensure Naira stability in the foreign exchange market.

One of the recommendations is the inclusion of Bureau De Change operators in the foreign exchange market due to their essential role in meeting the retail sector’s needs.

Gwadabe also mentioned that increasing demand for crude oil, a major Nigerian export, has contributed to the country’s growing foreign reserves.

As Nigeria continues to monitor these developments, there is a need for caution when trading the Naira, as the CBN appears committed to sustaining the gains made in the foreign exchange market.

Source: Daily Nigerian