Why Naira Remain Stable Despite Election Spending

Posted by African Examiner Business News, Government Buz, Latest Headlines Friday, February 15th, 2019

(AFRICAN EXAMINER) – Aminu Gwadabe, President, Association of Bureau De Change Operators of Nigeria (ABCON), has identified factors that kept the naira immune from election spendings.

Gwadabe told the News Agency of Nigeria (NAN) on Friday in Lagos that internal control mechanisms of the electoral umpire contributed greatly to checkmating political spendings as the naira remained stable at the FOREX market.

Gwadabe commended the awareness created by the Economic and Financial Crimes Commision (EFCC) against trading in illicit funds as a boost to the stability of the naira.

He also noted that uninterrupted inflows from the International Money Transfer Operators (IMTOs) and Diaspora remittances helped in making the market liquid.

The financial expert said that the proactiveness of the CBN in its series of interventions at the market, and its strategic partnership with BDCs helped in the stability of the naira.

He added that investors confidence in the market was also growing.

The market was apprehensive that speculator’s would leverage political spendings to crash the naira.

However, hours to the commencement of the 2019 elections, the naira remained stable, closing at N358.8 to the dollar at the end of Friday trading.