Dr. Wunmi Bewaji, a securities and Financial Regulation Expert, has revealed that the current momentum of Nigeria’s naira against the dollar is sustainable.
He also predicted that dollars is likely to decline rapidly at a point in time in the next few weeks.
Dr. Bewaji made the comment while speaking to TECHECONOMY correspondent in reaction to the current trends of the naira against the United States of America dollar.
Recall that on Wednesday the Nigerian naira was pegged at N1400/$1, meaning the exchange rate on the official market fell to N1,560/$1 on Tuesday; the strongest the naira has traded since the 4th of March when it closed at N1534/$1.
Speaking further, Dr. Wunmi, who traced the recent noticeable success of the naira to some drastic steps taken by the Federal Government, most noticeably on Binance, a global company that operates the largest cryptocurrency exchange in terms of daily trading volume of cryptocurrencies, said the actions and policies of the government are beginning to bring in positive results.
In his words, “You see the effect of that court order is that a lot of people who have traded using the instrumentality of Binance and who had thought that they have gotten away with it, they would be exposed in the next few days, or few weeks, as that trove of data is analyze.
So, my thinking is that could it be that Binance probably told the Federal Government Team, that they cannot release this data to them because they would be violating their customer rights to privacy?
But if they bring the court order then we would obey because of the time within which the court order was given, and the first sign that the data has been accessed is this release of the names of the terror financiers.
It is fundamental to note that Binance disabled all its naira services recently after Nigerian authorities accused the company of exploitation, devaluation of the naira, and money laundering.
While the restriction on naira services on Binance exchange held firm, the Nigerian government also accused the company of terrorism financing and money laundering, saying $26 billion worth of transactions on the platform were untraceable.
Although critics said, the measure might increase youth unemployment in a country already struggling with soaring inflation. The Federal government of Nigeria said the measure by authorities followed recent moves to try to save Nigeria’s currency from collapse and address economic problems.
Wunmi emphasized that the recent gain recorded by the Nigeria naira is sustainable, but quickly pointed out that the Nigeria media seems not to have given enough attention to the chain of events birthing the noticeable success of the naira in the last two days.
According to him, “the biggest news in the last 48 hours is the order of the court directing Binance to release the names and particulars of customers of Binance to the Economic Financial Crime Commission (EFCC)
He noted that it was “unfortunate that the Nigeria Press seem to have gone to sleep, not knowing how important, and how very important this piece of news is. Because in the last 48 hours, my thinking is that you find the federal government releasing the list of 15 persons who are supposed to be behind terror financing.
“You see the effect of that court order is that a lot of people who have traded using the instrumentality of Binance and who had thought that they have gotten away with it, would be exposed in the next few days, few weeks, as that trove of data is analyzed.
Expressing Optimism, he said it is going to have a huge impact on the forex market. Because a lot of people who had thought they could trade clandestinely will now know that such an avenue would no longer be available.
So I think this momentum is sustainable and the dollar is likely to decline rapidly at a point in time in the next few weeks.
This is even aside from the inflow of foreign direct investment or portfolio investment. So the momentum is quite sustainable in my opinion.
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