Naira still strong despite election odds, says ABCON

The naira has in over 18 months remained stable at both the official and parallel markets, despite several odds facing it ahead of the 2019 general elections, President, Association of Bureaux De Change Operators of Nigeria (ABCON), Aminu Gwadabe, has said.

Speaking recently to financial journalists in Lagos, the ABCON boss commended the Central Bank of Nigeria (CBN) financial sector reforms and contributions of Bureau de Change (BDC) operators to the current exchange rate stability, as against common practice of currency devaluations and depreciations across the world at election times. The naira exchanges at N306/$ in the official market and N358/$ in the parallel market despite the election fears.

Gwadabe said that absence of foreign exchange spikes and volatility before and during the 2019 election is a major achievement by CBN and the Federal Government. He said: “The dexterity of the government policies in ensuring that naira remained stable in an election year is commendable. Election years, as witnessed during the 2015 general elections, are marred by exchange rate volatility and spikes in the market.”

He disclosed that financial pundits had in early 2016, speculated that the naira would depreciate to as low as N1000/$. The election period of 2015, he added, witnessed over $100 billion capital flight outside the country. Activities of currency hoarders, speculators and rent seekers reached its peak in 2015.

He disclosed that ironically, the trend in foreign exchange market during this year’s election shows hope for the economy, sustained exchange rate stability, adequate dollar liquidity, increasing foreign capital inflows and most importantly, a unified and convergent exchange rate of BDCs and the parallel market. These feats, he said, are commendable by all standards.

On deepening capacity/skills of industry operators, Gwadabe appealed to CBN to issue Letter of Consent to ABCON proposed training institute. This, he added, will boost current ABCON management’s commitment to capacity building for members, to stimulate competence in the sector and make room for better foreign exchange management.

Continuing, Gwadabe also listed factors that led to current successes in the foreign exchange market. He said: “First, I want to congratulate the leadership of CBN for well coordinated, proactive exchange rate management strategies, which include creation of several foreign exchange windows to deepen liquidity and price discovery, restriction of foreign exchange on 42 items that can be produced locally, self-sufficiency in rice production and continuous partnerships between the apex bank and BDCs, all led to the current exchange rate stability enjoyed in the country.”

According to Gwadabe, the contribution of security agents in effective surveillance of Nigeria’s borders/airports to checkmate illegal foreign currency evacuation have in no small measure strengthened exchange rate and promoted economic growth. He also praised BDC operators under ABCON leadership for staying in the business despite lower margins and operational risks they face on daily basis.

The ABCON boss said BDCs have remained resolute in ensuring sustainable and stable exchange rate, price discovery and uniformity in market pricing for the dollar against the naira. He said the current 1% transaction margin that operators take is not sufficient for BDCs’ sustained operation, and totally falls below global standard of 10%. He said BDCs under ABCON leadership have demonstrated patriotism in the business by staying and sustaining it despite several challenges facing the sector.

SOURCE (abridged): https://www.sunnewsonline.com/naira-still-strong-despite-election-odds-says-abcon/

Nigeria stock market investors lost almost N2 trillion this year alone.

Our foreign reserves has lost almost $200 million since January https://www.pulse.ng/bi/finance/nigeria-has-lost-more-than-dollar196-million-from-its-foreign-reserves-since-the/67nyftn

And someone is here bragging about a Naira that is N362 to the dollar?

I am ashamed of Nigeria.

What naira is strong?
Can these people stop being political? Besides this is election period when both sides of the divide would run with any news, it is thus important that bodies like this try to be non-partisan.

The fact remains that we have never been so cursed like this that we have more than three exchange rates with some being official depending on where you go.
ABCON should know that whether buhari wins or Atiku does, they will need to align with the government of the day. It's important they use wisdom so as not to damage their much cherished AGIP role.

Good to know

Naira strong? Yet Dollar is at N360. Abegi, park well. Buhari and Osinbajo have ruined our economy

...

Good

Click Like to vote Buhari

Click share to vote a STONE.

Abeg I wan bet on this Nigeria election with bet9ja, I Don look 4 the option tire... Anyone with a helpful info

And so?

i beg you guys on saturday dont allow any politician use you to snatch ballot boxes on saturday, the penalty if you are caught is death.

to before warned is to before armed..the president has spoken

so N358/$ is too high. thats not stability

issokay

Small small we will get to Eldorado...

We can't go back to the evil days of PDP

Strong, how? At 365?

This one dey alright so?

I will change all my savings to Dollar if Atiku wins
The idiot promised to float the shiit currency

NIGERIA IS A JOKE!!!

Booo to PDP. Boo!!! Yeye people.

Check am for nairabet.

Tonymegabush1:
Abeg I wan bet on this Nigeria election with bet9ja, I Don look 4 the option tire... Anyone with a helpful info

BlackAfrican:
Small small we will get to Eldorado...

We can't go back to the evil days of PDP

True. Going back to PDP is suicidal.

bettercreature:
I will change all my savings to Dollar if Atiku wins
The idiot promised to float the shiit currency

He won't win.

This government is really working.
I cant wait till saturday to cast my vote for Buhari ooooo

Naira still strong for where?


mayb in a awa country sha who knows

God Bless President Muhammad Buhari,the one that PDP caused in 2015 is still on ground
Never again PDP in this nation

Good

NAIRA IS STRONG AND I BOUGHT FOR 365 TO 1 DOLLAR YESTERDAY AT UBA BANK

zagadon:
Check am for nairabet.

Ok man dnt know why bet9ja didn't display theirs well I will try nairabet then....

SAI MAIGASKIYA! SAI BUHARI ,SAI APC. VOTE APC.

This people think they are talking to dummies. Anyway, I don't blame them, APC supporters are dummies.

Nigeria youth be patriotic. You have no other country.I talk my own ooh.

CORRUPTION IS THE BANE OF DEVELOPMENT AND ECONOMIC GROWTH. BUHARI IS WORKING HARD ,OUR ECONOMY IS LOOKING UP, LOOTERS ARE NOT HAPPY BECAUSE THEY HATE NIGERIANS,THEY HATE YOUR CHILDREN,THEY WANT TO ENSLAVE YOU FOREVER .
Nigerians let follow and vote P.M.B AGAIN .Nigerians is going to next level of economic development and growth.

very simple.

There is dollar movement for this campaign, but it is over 50% lesser in volume compared to what moved in 2015 and 2011.

That's the cause