Illegal forex flight to Dubai, threat to Naira stability– Gwadabe


The consistent evacuation of dollars illegally from Nigeria to Dubai has been identified as a threat to stability of the naira, according to the President of the Association of Bureaux De Change Operators of Nigeria,  Alhaji Aminu Gwadabe.

Gwadabe made the observation in an interview with the News Agency of Nigeria  in Lagos on Monday.

He said that currency speculators would stop at nothing to make nonsense of the gains the naira had made against the dollar at the foreign exchange market in Nigeria.

According to him, huge sums of dollars go through the nation’s boarders illegally, creating artificial dollar scarcity in Nigeria.

The ABCON chief said, “Hawala activities, where the naira is traded abroad and create frivolous demand for the dollar, is still a threat to naira stability.”

He, however, said that the naira had remained stable in the local market exchanging between N360 and N365 to the dollar in the past five months.

He said that the depreciation in the value of the naira was only being witnessed abroad.

Gwadabe dismissed reports that the naira was traded for as low as N369 to the dollar at the parallel market, describing it as the handiwork of speculators.

He said that currency speculators were bent on distorting the market to mitigate the effects of their losses arising from the appreciation of the naira against the dollar.

However, the CBN could not immediately comment on the said evacuation of dollars to Dubai.

NAN reports that since February when the CBN started aggressive interventions at the foreign exchange market, it has injected more than $3.6bn into the market.


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