Naira Will Continue to Fall at Currency Exchange Market—Gwadabe

October 20, 2022
currency exchange market

By Aduragbemi Omiyale

The president of the Association of Bureaux De Change of Nigeria (ABCON), Mr Aminu Gwadabe, has said the incessant decline of the Naira against the United States Dollar at the currency exchange market would continue unless the Central Bank of Nigeria (CBN) take a bold step to put in place the right policies.

One of these, according to him, is the integration of Bureaux De Change (BDCs) operators in the sale of foreign exchange (forex) to customers.

Currently, the CBN supports the FX market with supply to meet the demands of customers, who approach commercial banks for BTAs, PTAs and others. Before now, BDC operators were given FX to sell to retail customers.

“I am not a prophet of doom and student of continuing Naira depreciation, but except fundamental goodwill and courage is demonstrated, the Naira will continue to suffer loss in exchange for the greenback,” the ABCON chief said.

He noted that the small retail exchange institutions, the BDCs, remain at the centre of CBN’s exchange rate policies implementation, hence the need for the regulator and public to continuously support BDCs’ roles in exchange rate stability.

Mr Gwadabe expressed optimism that the FX market in Nigeria can retain stability if the central bank listens to the forex traders’ cries and involves them in the system.

“I am very confident that Nigeria will in not-too-distant future appreciate a stable exchange rate and availability of forex in the local economy as the right people for government policies’ implementation get such responsibility,” he stated.

He called for increased automation of their processes and providing more channels of transactions for sustainable price equilibrium while eradicating rent-seeking, currency substitution and speculation.

Aduragbemi Omiyale

Aduragbemi Omiyale is a journalist with Business Post Nigeria, who has passion for news writing. In her leisure time, she loves to read.

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