The naira will trade at N415 to a dollar as the series of intervention by the Central Bank of Nigeria are sustained. The President, Association of Bureau De Change Operators of Nigeria, Alhaji Aminu Gwadabe, on Tuesday in Lagos said that the new Forex policy had eliminated frivolous demand for the dollar.
According to him, frivolous demand for dollar has been responsible for the weakness of the naira. The ABCON chief said that CBN’s continued intervention at the Forex market would soon spell doom for speculators and currency hoarders. “Currency speculators and hoarders would suffer more losses as the CBN injects more dollars to the interbank market.
“The sustained intervention by the CBN will technically take speculators out of business.“My expectation is that if both volumes and applicable exchange rates are reviewed for the BDC sub-sector, the naira would be trading at N415 to a dollar,’’ Gwadabe said.
The ABCON chief said that the CBN had recorded a huge success because of its new policy, adding that the naira had continued to strengthen at the parallel market, exchanging at N435 to a dollar. He told said that granting of more accessto the BDCs at the International Money Transfer Services Operators window would help to further strengthen the naira against the dollar.The CBN has injected over $1.5bn since February when it started its interventionat the interbank market.
The apex bank said that its aim was to bring stability to the foreign exchange market and provide easy access of foreign currencies to businesses and individuals. The CBN had on Monday injected additional $180m into the market to meet bids for wholesale auction and requests for invisibles such as medicals, school fees and personal travel allowances.