A Nigerian identified as Femisplash on Wednesday, stated why the naira will continue to appreciate.READ FULL CONTENT
Below is what the NL user, Femisplash wrote:
1.By a stroke of genius, the President had ordered the CBN be in charge of receipts of oil revenues, a departure from decade-long misappropriation of crude oil sales. It therefore enhances CBN’s ability to stabilize the currency. The insinuation that CBN borrows to sell to banks and BDCs should be disregarded.
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2. Clearing of $7billion backlog has done the economy so much good. Investors no longer have the fear of their funds being trapped.
3. Oil production is on a steady increase. Although, a component volume of it had been sold in the future, however, the significant increase in production is offsetting the shortfalls. Moreover, oil price is up.
4. The market is gaining back investors’ confidence. Following MPC meeting in January, investors reacted positively, total foreign portforlio recorded $2.3billion in febuary, purchases of naira assets stood at $1billion, oversea remitances went up greatly, FG bonds was oversubscribed, all these helped create more liquidity and increases market supply.
It is also noteworthy to appreciate CBN’s new guildelines, these bold moves have helped sanitize the financial system. CBN henceforth is closely monitoring operations of financial institutions and BDCs. CBN and the security agencies are following every transactions, the eagle eyes are following the money. Hopefully, it gets even better.
PS; foreign reserves has grown to $34billion as at February.READ FULL CONTENT
