The President, Association of Bureau De
Change Operators of Nigeria, Alhaji Aminu
Gwadabe, has blamed the recent
depreciation of naira on the speculators’
onslaught and resistance by the banking
industry.
Gwadabe said on Saturday in Lagos that the
refusal of some banks to sell the invisibles
such as personal and business travel
allowances frustrated naira recovery.
The ABCON chief said that the CBN had
recently accused the banks of frustrating its
policies.
He said it was ironical that the naira started
losing strength in spite of the CBN’s review
of the rates from N375 to N360 to a dollar.
According to him, the naira started trading
on Monday with a promising outlook for
sustained strength against the dollar and
other currencies, but it began to fall at the
middle of the week.
“The naira ended deeper northward to close
at N394 to a dollar on Friday, translating to
10 percent depreciation of what was
recorded during the week,’’ Gwadabe said.
The association president said that the
removal of disparity in applicable exchange
rates among the BDCs, Travelex and the
banks should have strengthened the nation’s
currency.
The financial expert said, “CBN’s knack for
last minute solution as recent development
has shown, accounted for the misfortune of
the naira at the foreign exchange market.’’
Gwadabe said that the battle for the soul of
the naira would be won if the CBN could
boost liquidity to the BDCs for the effective
unification of rates.
“It is evident that the injection of liquidity to
the interbank market rather than the BDC
sub-sector is not effective and transparent
for sustained FOREX rate convergence and
unification.
“Statistics from the CBN shows that about
20 banks get 80 million dollars weekly for
invisible transaction as against the 20
million dollars weekly for over 3000 CBN
licensed BDCs nationwide.
“The CBN should enhance public awareness
to guide end users on FOREX availability
and applicable exchange rates.
“The CBN should diversify the buffers from
oil proceeds to foreign investors inflows and
Diaspora remittances,’’ Gwadabe said.
He urged the CBN to sponsor a bill for an
act of the National Assembly for naira
convertibility in West Africa, as part of the
solutions to full recovery of the naira.
Gwadabe said that naira was currently a
means of exchange in about 15 countries in
Africa.
He urged the Federal Government to
increase security surveillance at the nation’s
airports and land borders to checkmate
illegal foreign cash evacuation.
The naira ended the week on a negative
note, eroding the 12.36 appreciation it
recorded in its trading last week.
The Nigerian currency appears to be on trial
again, as experts argue that winning the
battle for the soul of the naira requires more
than pulling the monetary policy lever.
They called for a blend of fiscal and
monetary policy and indeed patriotism from
all Nigerians to save the naira from further
sliding.
(NAN)
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