How the Naira can return to pre- N1000 era — Gwadabe

In an exclusive interview with DAILY POST, Dr. Aminu Gwadabe, the National President of the Association of Bureaux De Change of Nigeria (ABCON), shared insights into the recent depreciation of the Naira and proposed solutions to achieve foreign exchange stability in Nigeria.

Dr. Gwadabe expressed concern over the recent negative trend in the Naira’s value, attributing it to various factors. He noted a significant demand for dollars in the market, driven by speculative behavior and online trading platforms.

Despite interventions by the Central Bank of Nigeria (CBN), including the release of $10,000 to eligible BDCs, the Naira failed to strengthen below N1,300 per Dollar in the parallel market.

Highlighting the importance of BDCs in the foreign exchange market, Dr. Gwadabe emphasized their role in achieving exchange rate unification and Naira appreciation. He underscored the need for collaboration between the CBN and BDCs to address speculation and meet the retail market’s demand for foreign exchange.

Addressing accusations against BDCs for contributing to currency speculation, Dr. Gwadabe refuted the claims, stating that blaming a small subset of the market was unfair. He highlighted the significance of diaspora remittances and commended the CBN’s efforts to attract more remittances through new guidelines.

Dr. Gwadabe also discussed ABCON’s plans to harmonize the retail FX market through digitalization and stakeholder engagement. He emphasized the importance of transparency and compliance in tackling undocumented trading platforms.

Regarding the performance of the CBN under Governor Olayemi Cardoso’s administration, Dr. Gwadabe praised the professionalism and stakeholder engagement of the apex bank.

He urged for continued collaboration between fiscal and monetary authorities to address volatility in the short term, while recommending measures such as amnesty for citizens with offshore holdings and incentives for non-oil exports in the long term.