Naira to regain true value before December 2023 – Oyedele

The Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, has assured Nigerians that the ongoing plan by the Federal Government to introduce new foreign exchange rules will reflect the true value of the naira.

He also said the plan which would include a crackdown on illicit currency trading, would result in naira closing its gap with the unofficial rate and reaching a “fair price” before the end of 2023.

According to him, the government sees a “fair price” for the dollar at “N650 to N750”.

Oyedele, speaking in an interview with Bloomberg on Monday, added that the government would set transparent rules for the operations of the official market after clearing a backlog of dollar demand estimated at about $6.7bn.

He said, “The Federal Government plans to introduce new foreign exchange rules, the federal government plans to introduce new foreign exchange rules, including a crackdown on illicit currency trading.”

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The naira, on Monday, again resumed its downward trend after recording marginal gains against the US dollar as it commenced trading at 1,180 per dollar on Monday from 1,150 per dollar on Friday at the parallel market.

According to figures obtained from AbokiFx, the naira was bought and sold for 1,170 per dollar and 1,180 per dollar on Monday, a difference of N30 or 2.5 per cent.

Speaking on the development, the President, Association of Bureaux De Change Operators of Nigeria (ABCON) Dr Aminu Gwadabe, said the naira strengthened to the dollar at the parallel market at the end of last week.

“It is also important to note that the naira is just trying to discover its price as it is difficult to control price mechanism by fiat in a competitive and liberalised market but the interplay of demand and supply in the market,” he said.

Also at the Investor & Exporter forex window, naira commenced trading at 794.70 per dollar and hit a high of 998 per dollar before closing at 993.82 per dollar on Monday.