The Association of Bureau De Change Operators of Nigeria (ABCON) has revealed that BDC operators are now purchasing dollars at the rate of N980 to a dollar, marking a significant appreciation of the naira. This revelation was disclosed by the President of ABCON, Aminu Gwadebe, during a recent appearance on Channels Television's program, Business Incorporated.
Gwadebe commended the government and the Central Bank of Nigeria for their efforts, noting that this marks the first time in the past 15 years that the exchange rate for the dollar in the parallel market is lower than that at the official window. This unexpected surge in the naira's value against the dollar has brought about a sense of stability in the market, with Gwadebe highlighting the disappearance of speculation as a major contributing factor.
"Our quote rate we buy at N980 and we sell at N1,020 as at now," Gwadebe stated, underscoring the newfound confidence in the market. He attributed this positive development to various policies implemented by the central bank, particularly the correction of flows of diaspora remittances and oversubscription of treasury bills.
Despite the evident progress, Gwadebe acknowledged that challenges remain, particularly concerning the gap in diaspora remittances that are still externalized through other channels. However, he expressed optimism about the ongoing efforts to address these issues and further stabilize the currency market.
As news of the naira's unexpected appreciation spreads, economists and financial analysts are closely monitoring the situation, assessing its implications for Nigeria's economy and exchange rate stability. While this surge brings temporary relief, questions linger about the sustainability of this trend and the potential impact on businesses, consumers, and government policies aimed at managing currency fluctuations.
