https://leadership.ng/naira-gain-surpasses-expectations-at-n1020-say-bdc-operators/


Leadership News
Naira Gain Surpasses Expectations At N1,020/$, Say BDC Operators
Written by Nafisat Abdulrahman 4 mins ago

ABCON President, Aminu Gwadabe.
ABCON President, Aminu Gwadabe.

The Association of Bureau De Change Operators of Nigeria (ABCON) has observed a faster-than-anticipated appreciation of the Nigerian Naira against the US Dollar.

President of ABCON, Aminu Gwadabe, disclosed this during a virtual appearance on Channels Television’s ‘Business Incorporated’ programme on Tuesday.


Naira Surges Against Dollar, Hits 5-month High


According to Gwadabe, as of Tuesday afternoon, Bureau De Change (BDC) operators were purchasing the US Dollar at N980 and selling at N1,020. This rate starkly contrasts with the official exchange rate of N1,161 per dollar set by the Central Bank of Nigeria (CBN). This significant appreciation marks a gain of over 40% from early January, when the rate hovered around N1,900 per dollar, to now approximate N1,100.

The CBN has implemented several strategies aimed at bolstering the Naira. These included clearing nearly $7 billion in valid foreign exchange backlogs and supplying foreign exchange to over 1,500 BDC operators at official rates. Additionally, the CBN has taken measures against cryptocurrency platforms like Binance, which have been accused of fostering speculative activities.

Gwadabe lauded the current administration’s efforts, noting the historic nature of the Naira trading lower in the parallel market compared to the official rate—a phenomenon not seen in the past 15 years. “It’s a long journey, it did not start today. It’s a culmination of many factors, even though it happened faster than expected,” he explained. “I want to congratulate the management of the Central Bank. For the first time in the history of Nigeria, over the past 15 years, we have never seen where the open market is lower than the CBN rate.”

Expect 500/$ by end of May.

And it will be fixed.

Info from CBN insider

Kelklein:
I was in the bank today..

And honestly I was just shaking my head at the quantum of dollars people were passing round and handing to the fx designated tellers.. I told my friend that we ourselves are the problem of this country.. everybody just cashing in whenever they see any small opportunities not minding the repercussion of their actions on the country and the poor...

Those people are simply those that hoarded the dollars.. (Most kept them in their safes locked up at home hoping that it would get to over 2k.. now everyone is suddenly loading dollars out.. as a matter of fact, there is a dollar glut right now in Banks..

This is the right time for the CBN to put Nigeria first for once.. take the rate back to N500, you would see the BDC moderate to around N550.. watch fuel price crash and inflation normalise like a magic..

The big win here is that they have closed the big gap that causes abuse and arbitrage.. they have stopped the fx mádness

The rate won’t go below 800 as stipulated in the 2024 budget.