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Currency traders explain why Nigerian Naira may not depreciate to N400 per dollar at the end of 2019

Aminu Gwadabe, President, Association of Bureau De Change Operators of Nigeria (ABCON) says the country can absorb any shock from global oil prices.

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  • Analysts predict Naira depreciation before the end of 2019.
  • Currency traders describe predictions as mere speculation.
  • The Bureau De Change chief says the diversification policy of the federal government and strong macroeconomic policies of the CBN will continue to cushion any effect in oil price volatility.
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As top investment and consultancy firms have predicted that the value of Nigerian naira may depreciate above N400 to a dollar, currency traders described it as mere speculation.

Aminu Gwadabe, President, Association of Bureau De Change Operators of Nigeria (ABCON) described PwC's analysis that the Naira would fall to N415 to the dollar by the end of the year as speculative and act of sabotage.

In an interview with News Agency of Nigeria (NAN), Alhaji Gwadabe said the prediction is “pundit juxtaposed analysis; it is unbelievable, speculative and an act of western sabotage.”

He said though the Nigerian economy is dependent on proceeds from oil, the country would be able to absorb any shock from oil prices.

The currency traders' chief said the diversification policy of the federal government on rice production, refineries, banned 42 items and strong macroeconomic policies of the CBN will continue to cushion any effect in oil price volatility.

The increasing levels of investors’ confidence, high inflows and a huge Diaspora remittance, would stand as a buffer for the Naira,” Gwadabe said.

Last week, the global consultancy firm, PwC, predicted that the Nigerian currency may suffer a drop in value between N390 to N415 to a dollar at the end.

PwC's prediction came a month after a Lagos-based investment firm, Afrinvest also predicted the drop in the value of Naira to N401 to a dollar by the end of 2019.

In its report, “On the Precipice, Nigerian Economy and Financial Market 2018 Review & 2019 Outlook,” Afrinvest noted that there will be pressures on the currency in H2:2019, seeing a depreciation to N401 per dollar.

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