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BDC operators explain Naira appreciation against USD

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The Association of Bureau De Change Operators of Nigeria, ABCON, has said the oversubscription of recent FGN securities and clearance of foreign exchange backlog is the reason for Naira’s appreciation against the US Dollar.

According to NAN, the President of ABCON, Aminu Gwadabe, disclosed this in an interview.

He said the Central Bank of Nigeria’s recent policies have bolstered investors’ confidence, impacting the Naira.

“We are also seeing how they use the securities to attract foreign investments, which are oversubscribed. That also has a lot of positive impact on the exchange rate.

“As we speak, as of today before the meeting, the exchange rate of the Naira to the United States dollar is awesome. It’s reassuring and shows that the CBN has the muscles and arsenal to protect the value of the Naira.

“My advice is for them to continue widening and undergo a paradigm shift in sourcing foreign exchange for the economy,” he said.

Pmnews.ng recalls that in the second week of March, the apex bank auctioned N161.50 trillion worth of Treasury Bills in the Open Market Operations, OMO.

A week ago, CBN said it had cleared all foreign exchange backlogs.

The development had led to weeks of Naira appreciation in the forex market.

At the close of trading last Friday, the Naira appreciated to 1,431.49 per USD compared to N1,470 on Thursday.

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