How Chad And Benin Republic Are Causing Free Fall Of Naira

Aminu Gwadabe, president of the Association of bureau de change operators of Nigeria (ABCON), says the free fall of the naira is due to activities of Nigeria’s immediate neighbours.

Over the week, the naira has been on a free fall at the parallel market, moving from 439 per dollar on Monday to 490 to the greenback on Friday morning.

The British pound and euro are also currently trading at N600 and N520 respectively.

According to Gwadabe, foreigners are mounting pressure on the Naira by bringing in their dollar demand to Nigeria, hence, mopping up the dollars in the system.

“For the past few days, what we have been witnessing in the market is a kind of spike, a lot of volatility in exchange rate, and this has to do with fear,” Gwadabe told CNBC Africa.

“A lot of people are developing fear, and as a result of that, no Naira is being kept. People are moving from naira to dollar.

“A very worrisome factor that we have been witnessing in the market is that the market has recently been bombarded by people from neighbouring countries to meet their demands.

“What I mean by neighbouring countries is that a lot of demand is coming from Benin Republic, from Chad. International demand is also accumulating; we see a lot of Chinese traders coming into the economy, mopping up any available dollar.”

Gwadabe said ABCON and Travelex are now into a partnership, which would take off soon, thereby easing the stress on the local currency.

The bureau de change boss expressed support for the proposed sale of some national assets to beef up foreign reserves and support the naira.naira

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  • Mezzy Gilbert

    All of una na tif

  • chika bibian

    The exchange boss wey dey express support to the proposed sale of national assets…. That one no follow oga park well

  • emekachilaka

    I keep asking myself where is this country hiding to

  • Cornel Nwankwo

    From his speech anyway, some truth could be spotted, the activities of mankind like demand is really affecting the price of dollar and especially demand from foreigners.

  • Cornel Nwankwo

    This is serious, the Bureau the Change Boss is advising for the sale of some National Assets……………hmmmmmmm who send you here abeg………….

  • This one na excuse bah, e no commot road….we need way forward

    • emekachilaka

      from who

  • kayode akinsanya

    Accepted, what’s the way out sir?

  • Olovo Obinna

    No excuse for failure….introduce new ideas n policies to heal the already injured naira

    • Mezzy Gilbert

      Dt one b like who get idea?na make dem sell asset make dem buy am

  • WillieBravo

    Okay I see.