• Contcat Us
Tuesday, October 28, 2025
Nigeria Today
  • Home
  • News

    Designate Katampe Hill & Waterfalls as National Park — Ex-Head of Service Urges FG

    China And Nigeria Reaffirm Strategic Partnership at PRC’s 76th Anniversary Celebration

    Experts, Diplomats Discuss Global Governance Initiative at Abuja Seminar

    China Commissions 15th Chinese Corner in Abuja to Boost Cultural and Educational Exchange

  • World

    Bangladesh prime minister resigns, flees country after deadly protests

    U.S Supreme Court disqualifies Trump from 2024 presidency

    Calling President Xi a dictator ‘absurd and irresponsible’, China tells Biden

    Biden and China’s Xi met for three hours. Here’s what they talked about

  • Nigeria

    NCSP DG Urges Legislative Action to Deepen Nigeria-China Economic Cooperation

    FG Abandons Lagos-Calabar Coastal Highway Route, Reverts to Original Alignment

    Chinese-constructed light rail helps ease traffic flow in Nigeria’s Lagos

    We’ll Work With President-Elect Tinubu On Economy, Security & Job Creation – Chinese Envoy

  • Politics

    APC Affirms One-China Principle, Lauds Nigeria-China Partnership

    China’s national legislature opens annual session in Beijing

    Key highlights of President Xi Jinping’s meeting with President Tinubu

    Gov Uba Sani Engages CCECC in Beijing to Boost Kaduna State Projects

  • Opinion

    The One-China Principle and the UN Resolution 2758: Why they still matter for Nigeria and the world

    Implementing the Global Governance Initiative for a Community with a Shared Future for Humanity

    China: Africa’s Most Reliable Companion on Africa’s Path to Development

    My China Story: A Journey Through Beijing, Wuxi, and Qingdao

  • Sport

    Chinese Ambassador’s Cup: 2025 Wushu Championship Set to Hold in Abuja

    2025 World Relays: Chinese Embassy Refutes Claims of Visa Delays for Nigerian Contingent

    Haopeng Cup: CGC Wins 2024 CGCCN Basketball League

    China wins 12 Olympic swimming medals in Paris, shrugs off doping row

  • Culture

    China & Nigeria Celebrate International Day for Dialogue Among Civilizations

    Nigerian Students Shine at 24th Chinese Bridge Competition in Abuja

    China Marks 2025 International Chinese Language Day in Abuja

    Chinese Embassy in Nigeria Celebrates 2025 Spring Festival with Temple Fair

  • Videos
No Result
View All Result
  • Home
  • News

    Designate Katampe Hill & Waterfalls as National Park — Ex-Head of Service Urges FG

    China And Nigeria Reaffirm Strategic Partnership at PRC’s 76th Anniversary Celebration

    Experts, Diplomats Discuss Global Governance Initiative at Abuja Seminar

    China Commissions 15th Chinese Corner in Abuja to Boost Cultural and Educational Exchange

  • World

    Bangladesh prime minister resigns, flees country after deadly protests

    U.S Supreme Court disqualifies Trump from 2024 presidency

    Calling President Xi a dictator ‘absurd and irresponsible’, China tells Biden

    Biden and China’s Xi met for three hours. Here’s what they talked about

  • Nigeria

    NCSP DG Urges Legislative Action to Deepen Nigeria-China Economic Cooperation

    FG Abandons Lagos-Calabar Coastal Highway Route, Reverts to Original Alignment

    Chinese-constructed light rail helps ease traffic flow in Nigeria’s Lagos

    We’ll Work With President-Elect Tinubu On Economy, Security & Job Creation – Chinese Envoy

  • Politics

    APC Affirms One-China Principle, Lauds Nigeria-China Partnership

    China’s national legislature opens annual session in Beijing

    Key highlights of President Xi Jinping’s meeting with President Tinubu

    Gov Uba Sani Engages CCECC in Beijing to Boost Kaduna State Projects

  • Opinion

    The One-China Principle and the UN Resolution 2758: Why they still matter for Nigeria and the world

    Implementing the Global Governance Initiative for a Community with a Shared Future for Humanity

    China: Africa’s Most Reliable Companion on Africa’s Path to Development

    My China Story: A Journey Through Beijing, Wuxi, and Qingdao

  • Sport

    Chinese Ambassador’s Cup: 2025 Wushu Championship Set to Hold in Abuja

    2025 World Relays: Chinese Embassy Refutes Claims of Visa Delays for Nigerian Contingent

    Haopeng Cup: CGC Wins 2024 CGCCN Basketball League

    China wins 12 Olympic swimming medals in Paris, shrugs off doping row

  • Culture

    China & Nigeria Celebrate International Day for Dialogue Among Civilizations

    Nigerian Students Shine at 24th Chinese Bridge Competition in Abuja

    China Marks 2025 International Chinese Language Day in Abuja

    Chinese Embassy in Nigeria Celebrates 2025 Spring Festival with Temple Fair

  • Videos
No Result
View All Result
Nigeria Today
No Result
View All Result
Home Business

Nigerian Central Bank Told to Consider Floating the Naira, Recent Interest Rate Hike Slammed

by Nigeria Today
August 4, 2022
Reading Time: 2 mins read
0
2
SHARES
2
VIEWS
Share on FacebookShare on Twitter

The Central Bank of Nigeria should be discontinuing the fixed exchange rate system and let the naira freely float against the major currencies, Alhaji Aminu Gwadabe, the leader of a Nigerian association of bureau de change operators has said. The leader also slammed the recent adjustment of the central bank’s interest rate to 13%, which he said could have a negative impact on Nigeria’s underperforming economy.

Central Bank Told to Intervene to Save the Naira

The leader of a Nigerian association of bureau de change operators, Alhaji Aminu Gwadabe, has urged the country’s monetary authorities to consider allowing the local currency to freely float against the U.S. dollar. According to Gwadabe, doing this will help to prevent further depreciation of the naira.

In an interview with the News Agency of Nigeria, Gwadabe is also quoted advising the Central Bank of Nigeria (CBN) to consider intervening in foreign exchange markets. He reportedly said:

CBN should contemporaneously undertake a large-scale dollar intervention in the open market that can inspire confidence in the Naira and checkmate the current tailspin. Once there is a significant positive movement, the market will react and, in all probability, spur an avalanche of panic selling and further buoy the Naira.

Gwadabe also reportedly said the CBN could still make a profit through a buyback of the dollars on the open market.

The comments by Gwadabe, whose organization’s members were previously accused of fueling the naira’s freefall on parallel forex markets, followed recent reports of the naira’s plunge and the CBN’s subsequent call on Nigerians to stop using the greenback for speculative purposes. With the latest plunge, the naira’s parallel market exchange rate of slightly over N700 for every dollar versus the official exchange rate of N424 implies the currency may be overvalued by nearly 70%.

 

Cashing Out Remittances in Dollars Exerts Pressure on Naira

Meanwhile, the News Agency of Nigeria report also quotes Gwadabe questioning the CBN’s decision to adjust the monetary policy rate (MPR) to 13% per annum. According to Gwadabe, the adjustment is likely to have a negative impact on Nigeria’s underperforming economy.

“Increasing the MPR contracts the supply side, it is the wrong prescription. Let’s not copy the Americans who target inflation with FED rates to curb money supply; their factors of production have been fully mobilized, ours is at less than 20 per cent and requires stimulation of the supply side,” Gwadabe is quoted explaining.

Instead of hiking the rate, Gwadabe recommended cutting the rate to 5% which he said “looks more appropriate.”

Concerning the CBN’s decision to allow recipients of remittances to cash out in dollars, Gwadabe claimed this “fuels currency substitution.” Besides exerting more pressure on the exchange rate and inflation, this central bank policy “does not have a statutory backing unlike domiciliary accounts, therefore, it is illegal.”

Gwadabe also claimed that the solution to Nigeria’s currency woes “has to be psychological too” because the current “panic buying is driven more by psychology and less by economic fundamentals.”

Tags: businessEconomy

Related Posts

Business

Chinese Firms Invested Over $1.3bn in Nigeria’s Lithium Processing Projects – Alake

October 27, 2025
Business

China’s GDP Expands 5.2% In First Three Quarters of 2025

October 20, 2025
Business

China’s Industrial Output Up 6.5% In September

October 20, 2025
Business

China sees 888 million domestic trips during eight-day holiday

October 9, 2025
Business

Latest holiday spending pattern clear evidence of Chinese economy’s resilience, growth potential

October 9, 2025
Business

China to establish Africa’s first local insulin production facility in Nigeria

September 25, 2025
Next Post

Shell blames oil theft for Nigeria’s economic woes

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

POPULAR NEWS

Chinese Firm Not Involved In Shooting Of Immigration Officer – CGCCN

March 28, 2025

China Chamber of Commerce refutes media reports of alleged discrimination at Chinese Supermarket

April 22, 2024

FCT Schools win big at 2024 China-Nigeria Cultural Fiesta & Dancing Competition

November 7, 2024

China’s Independent Policy Of Peace And Friendly Cooperation

October 25, 2022

New Chinese Corner Inaugurated at FCT School

October 29, 2024

EDITOR'S PICK

What is the global significance of Chinese modernization?

August 13, 2024

Global Exhibition CEO Summit Holds In Shanghai

June 20, 2023

IEA chief says China is global leader in green energy

January 18, 2024

Indonesian President, Widodo To Visit China, Meet With Xi Jinping

July 21, 2022
Facebook Twitter Youtube Whatsapp

About

Nigeria Today is a platform dedicated to bringing you precise and accurate news and information about Nigeria.

Follow us

Categories

  • Africa
  • Art and life
  • Business
  • China
  • Culture
  • entertainment
  • Health
  • News
  • Nigeria
  • Opinion
  • Politics
  • POPULAR NEWS
  • Science
  • Sport
  • Tech
  • Travel
  • Uncategorized
  • Videos
  • World

Recent Posts

  • Stakeholders Renew Call for Stronger Government Action on Cancer
  • The One-China Principle and the UN Resolution 2758: Why they still matter for Nigeria and the world
  • Implementing the Global Governance Initiative for a Community with a Shared Future for Humanity
  • Chinese Firms Invested Over $1.3bn in Nigeria’s Lithium Processing Projects – Alake

© 2022 Nigeria-Today - News & Magazine

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist

No Result
View All Result
  • Home
  • Politics
  • World
  • Nigeria
  • Opinion
  • Sport
  • Culture

© 2022 Nigeria-Today - News & Magazine