Naira firms up as election draws nearer

Posted by Grand News | 1 October 2018 | 839 times

As the election date draws nearer, the country’s naira has been firming up in the last few days, according to a report by The Nations.

The naira, which exchanging at N361 to dollar early last week, firmed at N357 in the parallel market at the weekend, as politicians flooded the market with  the greenback. Major political parties have been conducting their governorship primaries.

Speaking on the development, President, Association of Bureaux De Change Operators of Nigeria (ABCON) President Aminu Gwadabe said “several customers were seen at the weekend, flooding the market with dollars possibly for primary elections and screening across party lines”.

He said the Bureau de Change (BDC) operators were taking advantage of the development to earn commissions from naira exchanges for the dollars, adding that the naira has made considerable gains in the last few days.

The primary season and pre-election spending have been building up since the beginning of September and will continue till early next year when elections will take place.

Other analysts said the naira was fast appreciating following renewed confidence and increase in dollar supply in the parallel market.

The Central Bank of Nigeria (CBN) however warned that the economy faces inflation and financial stability risks over the short-to medium-term if expected huge election spending is not checked.

Source: Grand News

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