ABCON, the Association of Bureau de Change Operators in Nigeria, has shared a projection on when the Naira might strengthen to N1,000 against the US dollar.
In an exclusive interview with NewsNow, Aminu Gwadabe, the President of ABCON, disclosed that the Naira is expected to reach N1,000 per USD by December 2024.
Gwadabe highlighted that the recent actions taken by the Central Bank of Nigeria (CBN) in providing foreign exchange to Bureaux de Change (BDCs) are already making a positive impact on the foreign exchange market.
He also clarified that reports claiming the Naira was exchanged at N1,000 per USD in Abuja were inaccurate. Currently, the exchange rate for the Naira hovers between N1,300 and N1,320 per USD in the parallel market nationwide, not at N1,000 as speculated.
He suggested that a more realistic exchange rate for the Naira against the Dollar could be N1,200 per USD.
Discussing the recent interventions by the CBN, Gwadabe emphasized, “The interventions in the BDC sector by the CBN are having a noticeable impact on the forex market. The injection of Dollars to BDCs is showing positive outcomes.”
He added, “Contrary to the rumors, the actual exchange rates across different cities like Onitsha, Abuja, and Lagos are currently ranging from N1,300 to N1,320 per USD. In my view, a feasible rate could be N1,200 per USD. If the current trends continue – including the growth in foreign reserves, enhanced investor confidence, increased revenues from both oil and non-oil exports, and other factors – then by December, we could see the Naira appreciate to N1,000 per USD,” as shared with NewsNow.
Furthermore, on Monday, the CBN allocated $10,000 to each BDC at N1,251 per US dollar, marking a significant move in forex intervention.
Meanwhile, analysts from Goldman Sachs had earlier predicted in March 2024 that the Naira might strengthen to N1,200 per US dollar within the next year.