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“Why The Naira Will Continue To Fall”

 

Alhaji Aminu Gwadabe, the President, Association of Bureau De Change Operators of Nigeria (ABCON), has identified some of the rationales behind the continuous fall of the naira.

According to Gwadabe, speculation, hoarding and increasing zero confidence of foreign investors among others are some of the reasons for the continuous spike of the local currency in the exchange market.

The News Agency of Nigeria (NAN) quoted him as saying that the existence of a Non-Derivable Forward market in London that enjoyed the patronage of Nigerian companies and foreign investors also contributed to dollar liquidity challenge.

Gwadabe said the NDF market rate hovers around N430 to a dollar.

He said, “The existence of that market is a challenge to liquidity inflow to our own market.”

The financial expert explained that Diaspora remittances had recently declined as most of the newly registered International Money Transfers Operators had yet to send inflows.

Gwadabe called for a robust and sustainable dialogue between operators in the forex market and the regulator to ensure an urgent solution to “the unfortunate situation”.

He noted that most countries experiencing recession were already getting out of it but wondered why the Nigerian situation was “lukewarm’’.

Gwadabe said that the regulators encouraged flexibility in the rates of foreign investors’ inflows as a temporary measure to boost liquidity in the market.

He called on the regulators of the forex market to also boost supply to the BDCs sub-sector.

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Author:

Dj Syrax, aka Yellow Jesus, entered the world of electronic dance music at a peculiar moment in time. Since moving to lagos he has played many guest slots at parties all over the island including M&H Executive, Diamond bar, Val times, Fresher, Angels Bar at Badore. He is one of a very small number of house, club and street Djs who use turntablism & scratching in their DJ sets and he relishes multi genre mixing – he will play anything as long it’s round. And good of course.

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