Naira remains strong despite election odds- ABCON


The nation’s currency, the naira has in the  last 18 months remained stable at both the official and parallel segment of foreign exchange markets, despite several odds facing it ahead of the 2019 general elections.

Bureaux De Change Operators attributed the forex stability in the system to the Central Bank of Nigeria (CBN) intervention in the forex market.

They stated that the CBN constant supply of forex in the market reduce speculation in the system.

President, Association of Bureaux De Change Operators of Nigeria (ABCON), Alhaji (Dr.) Aminu Gwadabe while addressing financial journalists in Lagos  commended the CBN financial sector reforms, and the contributions of the Bureau de Change (BDC) operators to the current exchange rate stability, as against the common practice of currency devaluations and depreciations across the world at election times.   

The domestic currency  exchanges at N306 to a dollar in the official market and N358 to a dollar in the parallel market despite the election fears. 

Gwadabe said that the absence of foreign exchange spikes and volatility before and during the 2019 elections year is a major achievement by the CBN and Federal Government. Speaking further he said “The dexterity of the government policies in ensuring that naria remained stable in an election year is commendable. Election years, as witnessed during the 2015 general elections, are marred by exchange rate volatility and spikes in the market”. 

He disclosed that financial pundits had had in early 2016, speculated that the naira will depreciate to as low as N1000 to a dollar. 

He said that the election period of 2015 witnessed over $100 billion capital flight outside the country. The activities of currency hoarders, speculators and rent seekers reached its peak in 2015.

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