Naira’s Recovery Spurs Price Drop, Boosts Confidence, Says BDCs

April 2, 2024
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The president of the Association of Bureaux de Change Operators of Nigeria, Aminu Gwadebe, has emphasized the positive impact of the naira’s recovery on the prices of goods and services in the country.

Speaking on Saturday, Gwadebe lauded the decision of the Central Bank of Nigeria (CBN) to permit Bureaux de Change operations in the foreign currency market, attributing it as a significant factor in the naira’s rebound.

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“The recovery of the naira has started reining in inflation as the prices of most necessities are becoming relatively lower in the market,” remarked Gwadebe.

He highlighted that the reintroduction of Bureaux de Change in the official forex market has bolstered dollar liquidity and eliminated illicit economic behaviors such as hoarding and round-tripping.

READ ALSO: Naira’s Winning-streak Continues As Value Rises To N1,382/$1 At Official Market  

Gwadebe underscored the far-reaching implications of the naira’s stability, noting a decrease in the cost of essential services. “With the recovery of the naira, the price of international school fees had dropped by 15 percent; the cost of medical tourism reduced by 20 percent, and prices of airfares for local and international trips dipped by 25 percent,” he stated.

He hailed the ongoing market developments as revolutionary, asserting that a stable naira would attract more foreign investments. Gwadebe also commended the collaborative efforts between Bureaux de Change, the CBN, and other stakeholders in achieving this milestone.

Furthermore, he highlighted the cessation of previous practices where Nigerians based abroad sold dollars at high rates, thanks to the rapid recovery of the naira against the American dollar.

Looking ahead, Gwadebe expressed optimism about the prospects for forex earnings, citing a rise in foreign portfolio investments. He called upon the CBN to maintain its partnership with Bureaux de Change to sustain the success achieved so far.

“In summary, the combination of actions taken has induced an atmosphere of public calmness, confidence, hope, and liquidity in the markets,” concluded Gwadebe.

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Emmanuel Ochayi is a journalist. He is a graduate of the University of Lagos, School of first choice and the nations pride. Emmanuel is keen on exploring writing angles in different areas, including Business, climate change, politics, Education, and others.

Emmanuel Ochayi

Emmanuel Ochayi is a journalist. He is a graduate of the University of Lagos, School of first choice and the nations pride. Emmanuel is keen on exploring writing angles in different areas, including Business, climate change, politics, Education, and others.

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