Hope for naira as economy receives $1.5bn diaspora boost

Hope for naira as economy receives $1.5bn diaspora boost

Hope for naira as economy receives $1.5bn diaspora boost

Policy makers have remained upbeat on their expectations of naira rise in value as Nigerians abroad plan to repatriate about $1.5 billion into the country, between December and January.

This is part of the outcome of a series of meetings in Europe and America by a special committee made up of officials from the Office of the Special Adviser to the President on Diaspora, representatives of CBN and Ministry of Finance, in September 2016.

A report by the committee says there is a strong commitment from most of the Nigerians in US and Europe to use the Christian holiday to visit home and contribute to the efforts at the country recovering from its recession.

“Ordinarily, the Yuletide is the period of increased business transactions, but this year’s will be different given the positive responses from most Nigerians, who have good investments abroad.

“From our calculation, naira is expected to gain, at least five per cent instead of the usual loss in value as have always been the case during the season,” an official said.

The local currency exchanged, on Thursday, at N485 to a dollar on the parallel market from 480 last week, but traded at N320 at the interbank market.

However, CBN said it was working on the possibility of having naira’s exchange to dollar hover around 305 to a dollar before the end of the year.

“Demand for the dollar is seen dropping ahead of the Christmas as businesses gradually wind down, while dollar flows from Nigerians in Diaspora visiting home on holiday is expected to increase supply in the market,” an official told Ripples Nigeria.

Sources: Ripples Nigeria

 

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