Aminu Gwadebe, the National President of the Association of Bureau de Change Operators, has disclosed that the recent increase in interbank proceeds to Bureaux de Change, as mandated by the Central Bank of Nigeria, along with other contributing factors, has led to a notable appreciation of the Naira against the dollar over the past week.
Gwadebe shared these insights over the weekend in response to the Naira’s recent performance against various currencies in the foreign exchange market.
The Naira gained N15 in the black market last week, closing at N1565 per dollar.
Commenting on the Naira’s impressive trajectory, Gwadebe noted, “We have seen the currency improve from around N1660 to approximately N1552 per dollar. This is a significant change.”
He stated, “Several factors are working in tandem. The Central Bank of Nigeria’s directive to increase interbank proceeds to Bureaux de Change is helping to inject liquidity and alleviate market panic.
“Additionally, some attribute this to the Chinese holiday, which may have decreased demand. Furthermore, the FX Code has been instrumental in instilling order, discipline, and oversight, while investor confidence remains strong.
“The interbank market is currently flooded with portfolio inflows, and there is a lack of negative sentiment.
“Previously, we faced a significant negative perception, including doubts about the Central Bank’s management. However, they have managed to restore some confidence, particularly after addressing the $7 billion FX backlog. The positive effects of their policies are evident, and the CBN is committed to ensuring that reforms continue to yield favorable outcomes. They are also providing extensive forward guidance to enhance communication.”
“I believe this approach has instilled hope in many that the CBN is committed to collaborating with stakeholders.” In the official market, the Naira held steady at N1,507.8 per dollar, based on the CBN’s exchange data released on Thursday.
