CBN, amid rising reserves, oil revenue, reports stronger Naira

The Naira on Monday appreciated further at the official foreign exchange market, trading at N1,452.79 to the dollar.

Data from the Central Bank of Nigeria (CBN) showed the Naira gained N5.16 compared with Friday’s rate of N1,457.95.

This represents a 0.35 per cent appreciation, extending the weeklong positive trend recorded in the previous week.

The Association of Bureau De Change Operators of Nigeria (ABCON) commended the month-long appreciation of the Naira in both official and parallel markets.

ABCON President, Dr Aminu Gwadabe, told the News Agency of Nigeria (NAN) in Lagos that several factors contributed to the gains.

He listed them as Nigeria’s exit from the Financial Action Task Force (FATF) grey list, increased oil revenue, higher foreign reserves and diaspora remittances.

Gwadabe congratulated the nation for leaving the FATF grey list, noting that the Naira gained N10.00 against the dollar at the parallel market on Monday.

He said the development had boosted investors’ confidence and attracted more foreign investments into the country.

According to him, sustained reforms and information sharing among security agencies helped trace proceeds of crime and facilitated Nigeria’s exit from the list.

He added that the CBN’s success in raising foreign reserves to about 42.26 billion dollars provided a strong buffer for the Naira.

“The sustained stability has reduced speculation. Speculators’ activities have been rendered ineffective in the market,” he said.

(NANS)