Naira’s Recent Forex Market: The Association of Bureaux De Change Operators of Nigeria (ABCON) has expressed confidence in the sustainability of the recent gains made by the Naira in the forex market. Dr. Aminu Gwada, the President of ABCON, emphasized in a statement on Saturday that the artificial devaluation experienced recently has not affected the Naira’s long-term growth trajectory.
Dr. Gwada attributed the recent depreciation of the Naira to factors such as speculation, currency substitution, and a loss of confidence in the local currency. He commended the efforts of the federal government in restoring confidence in the market, citing the positive impact of fiscal and monetary policies.
He stated, “The rebound of the Naira has shown no empirical evidence to back up its recent mindless depreciation. The depreciation is out of speculation, currency substitution, and loss of confidence.” He further emphasized the role of market dynamics in determining the Naira’s value, pointing to the interplay of demand and supply as crucial factors.
Dr. Gwada expressed optimism regarding the Naira’s sustained growth trajectory, despite resistance from speculators facing substantial losses. He highlighted the potential for increased liquidity injection from NLNG dividends and access to bilateral financial assistance as key factors contributing to the Naira’s positive outlook.
Naira’s Recent Forex Market is worth noting that the Naira closed last week on an upward trajectory, trading at 789.94/$ and 1,113/$1 in the official and parallel foreign exchange markets, respectively.