Naira appreciates by 0.9% to N1,528.00/$

Naira at the Nigerian Foreign Exchange Market (NFEM) rate on Monday appreciated by 0.9per cent to N1,528.00 against the dollar from N1,542.00 against the dollar it opened for trading.

The naira last week had depreciated by 3.6per cent to N1,556.63 against the dollar at the NFEM as the CBN’s intervention — selling c.$59.00 million to authorized dealers — helped limit further weakening amid persistent excess demand over supply.

The Bureau De Change (BDC) operators have attributed the recent crash of the naira in the foreign exchange market to the huge demand for foreign exchange due to the windfall from some contractual payments and releases by some Federal Government agencies.

This was made known by the President of the Association of Bureau De Change Operators of Nigeria (ABCON), Aminu Gwadebe, during an exclusive chat with Nairametrics, where he admitted that the forex market is witnessing some unprecedented attacks.

This is coming after the recent strong performance of the naira with the local currency trading around the N1,500 to a dollar mark at both the official and unofficial market as a result of the policies of the CBN.

Gwadebe noted that this unfortunate development has once again given credence to the need for regulators to be consistent in the implementation of reforms and policies in a volatile forex market.

The ABCON boss said the licensed currency traders will continue to inform the public that these occasional shocks in the foreign exchange market are fictitious, discretionary and a burble that will burst.

He also noted that the CBN must ensure the harnessing and coordination of forex supplies to the critical retail end of the market as well as track speculation, currency substitution and hoarding activities.

Gwadebe said, ‘’There was a shock yesterday (Friday) as the market witnessed unprecedented attack on the naira as the naira stability and appreciation regressed sharply with over N70/$ loss from high of N1503/$ to a low of N1575/$ just in a jiffy.

’Our findings revealed a lot of the demands came from the windfall of some contractual payments and releases. This unfortunate development underscored the regulator’s need for consistency in implementation of reform policies in a volatile forex market.

‘’While we will continue to communicate to the public that the seldom shock is fictitious, discretionary and a burble that will burst, it is also germane for the CBN to ensure the harnessing and coordination of supplies to the critical retail end market and to continue to mull speculation, currency substitution and hoarding activities.

‘’The achievements being recorded should not be allowed to be bastardized by mere emotional behaviours and market indiscipline.’’