Nigerian currency, Naira has gained 9.3% as it strengthened to N435 to a dollar at the parallel market yesterday. This is against about N480 to a dollar it had been trading in the past days.
However, this showed a gain of N45, representing about 9.3% rise.
Currency dealers attributed the development to the planned resumption of forex sales by the Central Bank of Nigeria (CBN) to operators of Bureau De Change (BDC), which according to them is expected to bolster dollar liquidity in the market.
Meanwhile, The apex bank on Monday, is expected to resume forex sales to BDCs on Monday.
The bank had announced its intention to resume forex sales to the retail segment of the market. It was forced to postpone it because of the extension of the date for resumption of international flights to September 5.
Finance Naija gathered that, the President, Association of Bureau De Change Operators of Nigeria (ABCON), Alhaji Aminu Gwadabe, said the announcement of the plan to resume forex sales to the currency dealers was the major factor that led to the gain recorded by the nation’s currency against the greenback.
“The plan to resume forex sales to BDCs was what broke the camel’s back. Dollar supply to BDCs is a potent weapon to fight against speculation.
For those still speculating in the market, they are already burning their fingers and taking losses.
“So, my advice is that when you don’t have a genuine and effective need to use dollars, stop stockpiling the currency.
From what we are seeing, this trajectory is going to continue and I advise members of the public to always buy when you have a purpose for it and not buying to keep.
“What we saw in the market in the past few weeks was not a true reflection of the value of the naira against the dollar.
We saw, even during the lockdown when flights were not flying, everybody literally became a forex dealer. It is unfortunate. That cannot happen in other countries.
When you don’t need to make payments abroad, what are you hoarding dollars for? It’s unfortunate.”
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Ahmmed Adekunle Aleem well known as SIR 3PU (Sir Triple) is a Personal Finance and Music Blogger. He’s a Content Editor at Wiseloaded.com & Financenaija.com.
If he’s not online, then he’s playing Video Game or watching Manchester United’s match