Currency hoarders risk huge losses over naira’s positive outlook

The naira is set for a smooth sail against other currencies from now till a greater part of 2018. This could spell doom for hoarders including politicians who may have reserved some of such currencies for the 2019 electioneering.

The positive outlook is riding on the back of resurging reserves’ profile, now nearing $41 billion, and stable crude oil prices at the international market, oscillating between $68 and $71 per barrel.

It is also bolstered by the sustained management of the foreign exchange (forex) market, which has reduced the country’s import bill to $1.5 billion monthly from a record high of $5.5 billion as at February 2017.

This is as items like rice, starch; toothpick and margarine are being substantially controlled in the importation bill and produced locally.

Besides, the near convergence of the three major forex markets: the inter-bank; licensed bureau de change; and roadside hawkers (black market), is raising new hopes of further appreciation of the naira, with more forex supply from both official and autonomous sources.

The Guardian, January 26, 2018

 

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