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| Emefiele |
The
President Bureau De Change Operators of Nigeria (ABCON) Aminu Gwadabe wants the
CBN Governor Godwin Emefiele to call an emergency meeting of all stakeholders
on the fate of the local currency.
Gwadabe
said that was the only way out because “things are getting out of hand” with
the market liquidity dropping.
Nigeria
has been grappling with a currency crisis since crude oil prices dropped by
about 43 per cent from an average of $100.35 throughout 2014 to an average of
$57.20 for the first six months of last year. It is now around $48.09 per
barrel.
The
Nation writes that “specifically, the drastic fall in the price of crude oil,
which constitutes the largest component of Nigeria’s forex reserves, has cut
dollar earnings from about $3.2 billion monthly to about a billion dollar for
the same period. This has negatively impacted on the value of the naira.
“The
woes of the naira will worsen in the coming months, with the local currency
expected to exchange for N390 to the dollar at the close of the year, a report
by Renaissance Capital (RenCap), an international investment and research firm,
said.
“Currency
traders introduced a maximum resale premium on dollar trades to try to boost
liquidity while investors have welcomed the removal of currency controls but
many are still steering clear until the economy shows signs of a concrete
recovery”.
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