The Association of Bureau de Change Operators in Nigeria, ABCON, has made a bold prediction regarding the future of the Naira against the US dollar. In an exclusive interview with Media Talk Africa, the President of ABCON, Aminu Gwadabe, stated that the Naira is expected to appreciate to N1,000 per USD by December 2024.
Gwadabe attributed this positive outlook to the recent interventions by the Central Bank of Nigeria (CBN), which have been supplying forex to BDCs and positively impacting the FX market. Despite rumors circulating about the Naira reaching N1,000 per USD in Abuja, Gwadabe clarified that the current exchange rate at the parallel market ranges between N1,300 and N1,320 per USD, with a more realistic rate being N1,200 per USD.
He emphasized that the CBN’s interventions are already making a difference in the foreign exchange market, with the supply of Dollars to BDCs yielding positive results. Gwadabe debunked the fake news about the Naira exchanging at N1,000 per USD and highlighted that the actual rates in Onitsha, Abuja, and Lagos are between N1,300 and N1,320 per USD.
Looking ahead, Gwadabe expressed optimism that if the current momentum is maintained – including the rise in foreign reserves, increased investors’ confidence, and higher revenue from crude oil and non-oil exports – the Naira could indeed reach N1,000 per USD by December.
In a significant move, the CBN recently sold $10,000 to each BDC at N1,251 per US dollar, signaling a strong FX intervention. This aligns with the forecast by Goldman Sachs analysts in March 2024, who predicted that the Naira could appreciate to N1,200 per US dollar within the next 12 months.
With these developments shaping the foreign exchange landscape in Nigeria, all eyes are on the Naira as it strives to strengthen against the US dollar in the coming months.
