Dubai – Tech | Business | Economy https://techeconomy.ng Tech | Business | Economy Wed, 30 Apr 2025 07:00:32 +0000 en-GB hourly 1 https://wordpress.org/?v=7.0 https://techeconomy.ng/wp-content/uploads/2025/06/cropped-256Px-32x32.png Dubai – Tech | Business | Economy https://techeconomy.ng 32 32 Search AfriCon 2025: SEO Experts Gather In Lagos https://techeconomy.ng/search-africon-2025-seo-experts-gather-in-lagos/ https://techeconomy.ng/search-africon-2025-seo-experts-gather-in-lagos/#respond Tue, 29 Apr 2025 23:08:57 +0000 https://techeconomy.ng/?p=157751 Experts in the African digital marketing ecosystem are set to converge on Lagos, Nigeria for the second edition of Seach AfriCon, scheduled to start on May 2, 2025.

The continent’s foremost SEO and digital marketing event will hold at Mike Adenuga Centre, Alliance Francaise, Osborne Road, Ikoyi, Lagos State from 10:00am to 5:30pm and will feature a panel discussion on ‘How African Culture Influences Digital Marketing and Consumer Engagement’ by Ife Durosinmi-etti, founder, Herconomy; Shina Charless Memud, founder, Yournotify and Crystal Nyarko, founder, Clear Narative Media.

Topics that will be treated at the conference include:  ‘Transforming Business Visibility Through Local Search Expertise’ by Amaka Chukwuma(SEO and Content Strategist), ‘Common SEO Mistakes and Quick Wins for African eCommerce Brands’ by Safia Marmon (Project Leat at Sunbowl), ‘Smarter Search Strategies: Diversifying Ad Platforms in the Age of AI’ by Serge Nguele (Founder Your PPC doctor), ‘Scaling Your Business Responsibly with AI, Even on a Tight Budget’ by Emina Demir (Head Of Digital Marketing-Vixen Digital), ‘Building Keyword Strategy’ by Juliana Turnbul (Semrush), and ‘Content & Product Auditing with Google Tools and Crawl Data’ by  Marco Giordano (Web & Data Analyst).

Others are; ‘Using Case Studies To Uncover Pain Points and Buyers’ Behavior’ by Stella Inabo (Content Marketer, Float), ‘How Search Happens: Before and After you Hit Enter’ by Dave Cousin (Founder Dave the SEO &co), ‘Insights From African Startups That Are Killing It With SEO and Content Marketing’ by Shehu AbdulGaniy (Founder, Your Content Mart), ‘Crystal Clear Socials: A Framework For Standing Out on Social Media’ by Crystal Nyarko (Founder, Clear Narrative Media), ‘Emotional Connections: Using Brand Archetypes to Enhance Engagement’ by Rejoice Ojiaku (Co-founder, B-Digital, UK), ‘Data-Driven Digital Marketing: The Importance of Data in Decision-Making’ by Ifeoma Nicole Oraekie (Product Marketer) and ‘The 5 Channels You Need to Become a Thought Leader’ by Chima Mmeje (Founder FCDC).

According to the convener, Ebere Cecilia Jonathan, this year’s event will offer a more immersive experience for participants as they network under a convivial ambience of music and poetry with the leading lights in digital marketing, sharing experiences, challenges and solutions.

She says, “Digital marketers, SEO professionals, Tech marketers, business owners, brands and entities interested in improving their online presence and visibility will be gathering to learn how to improve their skills, rethink internet marketing strategies, and connect with like-minded individuals.

Seach AfriCon
Seach AfriCon

“Join us for Africa’s must-attend SEO and digital marketing event to learn strategies and gain inspirations to improve your business and personal digital presence. It is an opportunity to meet the faces you’ve always interacted with online, so join industry experts, business owners and make new connections.

“We’re taking the conversation to the streets of Lagos the next day with Search AfriCon outing.  Don’t miss this exclusive opportunity to unwind and create valuable relationships.”

The Search AfriCon 2025 event is supported by Google, The Gray Dot Company, USA, Women-in-Tech SEO, UK, Semrush, Bax Analytics, Turn Global, Spain, and Nisa Digital, Dubai.

]]>
https://techeconomy.ng/search-africon-2025-seo-experts-gather-in-lagos/feed/ 0
Absa Targets Middle East Trade Boom with 2026 Dubai Launch https://techeconomy.ng/absa-targets-middle-east-trade-boom-2026-dubai-launch/ https://techeconomy.ng/absa-targets-middle-east-trade-boom-2026-dubai-launch/#respond Wed, 02 Apr 2025 12:45:52 +0000 https://techeconomy.ng/?p=156083 Absa Group Ltd., South Africa’s third-largest bank by assets, is preparing to open a representative office in Dubai by early 2026. 

Awaiting regulatory approval, the goal is to tap into the increasing flow of trade and investment between Africa and the Middle East.

Yasmin Masithela, CEO of Absa’s corporate and investment banking division, confirmed the plan. “We’re setting up a Dubai office in the first quarter of 2026,” she stated during an interview in Johannesburg. “We’re just waiting for regulatory approval.”

For Absa, the decision goes beyond expanding its footprint, to staying competitive. Several South African banks, including Investec, Standard Bank, Rand Merchant Bank, and Nedbank, already have a presence in Dubai, positioning themselves to benefit from the region’s economic growth. Absa is now making its move to ensure it doesn’t fall behind.

The Middle East has become highly important in Africa’s economic sector, with Gulf countries investing over $100 billion on the continent since 2014. The UAE’s trade with sub-Saharan Africa has surged by more than 30%, and Saudi-Africa trade has multiplied twelvefold in the same period. 

The UAE’s trade deal with Kenya and Saudi companies like Jameel Motors expanding into South Africa are just recent examples of this growing engagement.

With the establishment of a base in Dubai, Absa aims to connect African businesses with Gulf investors and vice versa. Infrastructure development is a key part of this strategy. “You want to be closest to the clients that are driving the businesses that are aligned to your strategy, and infrastructure development has always been one of our strategic objectives,” Masithela explained.

This expansion builds on Absa’s existing international presence in the UK, the US, and a recently launched unit in China. However, while the bank expects moderate earnings growth this year, the impact of the Dubai office will be seen over time. 

]]>
https://techeconomy.ng/absa-targets-middle-east-trade-boom-2026-dubai-launch/feed/ 0
Dubai Tops List of Most Digitally Dependent Cities in 2025 https://techeconomy.ng/dubai-tops-list-of-most-digitally-dependent-cities-in-2025/ https://techeconomy.ng/dubai-tops-list-of-most-digitally-dependent-cities-in-2025/#respond Mon, 03 Mar 2025 23:05:42 +0000 https://techeconomy.ng/?p=154062 Dubai has been named the most digitally dependent city in the world, according to a recent study by ZeroBounce

The research assessed global cities based on key aspects of digital infrastructure, including internet speed, public Wi-Fi availability, CCTV coverage, and access to smart city solutions like pollution monitoring, transport digitisation, and real-time traffic updates.

Dubai secured the top position with an overall score of 79.1, standing out for its extensive CCTV coverage (88.5) and high-speed internet, ranking second globally in internet performance. 

The city also scored high in online maintenance reporting, leading digital connectivity.

Shanghai and Seoul Follow Closely

Shanghai took second place with a score of 71.4, the highest ratings in pollution monitoring (89.7), digital transport infrastructure (87.5), and real-time traffic information (88.1). The Chinese city’s online maintenance reporting system (84.5) also outperformed Dubai’s by 8%.

Seoul ranked third with a score of 70.0. The South Korean capital showed strong performance in public Wi-Fi accessibility and CCTV coverage (80.6), alongside its commendable digital nomad ranking of 4.5, which was higher than both Dubai and Shanghai.

Beijing and Singapore Strengthen Asia’s Digital Dominance

Beijing took fourth place with a score of 66.3, doing great in pollution monitoring (86.5) and digital transport solutions (83.7). Singapore followed in fifth place, scoring 64.6. 

While its transport infrastructure digitisation (63.2) trailed the top four cities, Singapore outperformed Dubai in CCTV coverage (80.8) and pollution tracking (62.0).

Europe and North America’s Digital Competitors

Amsterdam ranked seventh with a score of 55.3, making it the highest-placed European city. The Dutch capital had a strong digital nomad ranking (5.1) and reliable internet connectivity, earning a Speedtest global rank of 22.

Barcelona followed in eighth place with 53.3, standing out for having the highest digital nomad rating (5.8) among the top ten cities. However, its CCTV coverage (41.2) and pollution monitoring systems (41.0) were lower compared to the leading cities.

New York City was the only North American city on the list, ranking ninth with a score of 51.9. The U.S. city had nearly double Amsterdam’s CCTV coverage (57.2) but lagged behind Barcelona in transport digitisation by 7%.

Stockholm rounded out the top ten with a score of 51.8, standing out for its internet connectivity (ranked 15th globally) and having the most advanced digital transport infrastructure among European cities (70.0). However, its pollution monitoring score (57.8) fell below the overall top ten average.

The Rise of Digital-First Cities

Brian Minick, chief operating officer at ZeroBounce, commented on the study, stating: “It’s fascinating to see the data ranking the cities with the strongest digital infrastructure around the world. This infrastructure not only improves transportation and public safety but also enhances access to essential services like healthcare and digital governance. Our study shows that cities in the Middle East and Asia lead in forward-thinking technology and thus streamline public services, improve mobility, and create safer, more connected environments.”

The findings reveal how much countries are relying on digital infrastructure across the world, with Middle Eastern and Asian cities at the top of technological advancements.

]]>
https://techeconomy.ng/dubai-tops-list-of-most-digitally-dependent-cities-in-2025/feed/ 0
UAE Launches 10-Year Golden Visa to Attract Content Creators https://techeconomy.ng/uae-launches-10-year-golden-visa-to-attract-content-creators/ https://techeconomy.ng/uae-launches-10-year-golden-visa-to-attract-content-creators/#comments Tue, 18 Feb 2025 07:59:23 +0000 https://techeconomy.ng/?p=153340 The United Arab Emirates (UAE) has launched a long-term residency initiative designed specifically for content creators, offering them the opportunity to live and work in the country for up to a decade.

The Golden Visa aims to attract professionals in the creative sector, including writers, filmmakers, influencers, photographers, and digital storytellers.

With Dubai emerging as a global hub for digital media and creative industries, this initiative seeks to provide long-term stability to content creators, allowing them to focus on their work without worries over visa renewals.

Unlike traditional work permits, the Golden Visa does not require a national sponsor, granting better flexibility to those in the creative field.

Who Can Apply?

The Golden Visa is open to individuals who have made significant contributions to the digital and creative sectors. Eligible applicants include:

  • Writers

  • Filmmakers

  • Influencers

  • Photographers

  • Digital storytellers

To qualify, applicants must ascertain a strong record of impactful content creation, industry recognition, and the prospect to contribute to the UAE’s growing digital economy.

They must also show evidence of consistent audience engagement and career growth. Those already holding a UAE residence visa must cancel it before applying. Similarly, any dependents under the applicant’s sponsorship must also have their visas cancelled before submission.

Application Process

The process is managed by Creators HQ, the designated endorsing body for the Golden Visa. Interested content creators must follow these steps:

  • Submit an Application – Applicants need to visit the Creators HQ website and complete an online form.

  • Receive a Nomination – If the application is successful, the candidate will receive an email confirming their eligibility.

  • Medical Examination & Documentation – The applicant must undergo a medical test and submit necessary documents, including a valid passport, Emirates ID (if applicable), and a passport-sized photograph.

  • Visa Printing – After fulfilling the required steps, the applicant must visit a Services 1 Center to finalise and print the Golden Visa.

  • Collection of Emirates ID – The final step involves collecting the Emirates ID from the Federal Authority for Identity, Citizenship, Customs & Port Security.

Why Dubai?

Dubai has long been an attractive destination for digital professionals due to its modern infrastructure, tax-free system, and thriving digital community. With the introduction of the Golden Visa, the UAE seeks to strengthen its place as a creative and technological hub, giving content creators a stable environment to develop their careers.

The initiative allows filmmakers, writers, influencers, and photographers to establish themselves in a flourishing market with long-term opportunities.

With its straightforward application process and benefits, the UAE Golden Visa presents a great option for those looking to expand their presence in the digital and creative industries.

]]>
https://techeconomy.ng/uae-launches-10-year-golden-visa-to-attract-content-creators/feed/ 1
Inside Dubai’s AI Revolution: A Journalist’s Perspective on the Technological Wave https://techeconomy.ng/inside-dubais-ai-revolution-a-journalists-perspective-on-the-technological-wave/ https://techeconomy.ng/inside-dubais-ai-revolution-a-journalists-perspective-on-the-technological-wave/#respond Wed, 23 Oct 2024 08:16:11 +0000 https://techeconomy.ng/?p=146175 As a journalist in Nigeria, travel and networking are some of the most exciting aspects of our profession.

These trips not only provide opportunities to uncover news stories but also offer valuable insights into different cultures and ways of life.

Unfortunately, due to Nigeria’s challenging economic situation, such travel opportunities have become increasingly rare.

That is why I was overjoyed to receive an email from Edelman, a public relations firm, informing me that I have been selected as one of 22 international IT journalists for an all-expenses-paid trip to Dubai, United Arab Emirates.

Given the pressures and deadlines that come with our profession, this news was like a breath of fresh air for me.

Trips like this have a rejuvenating effect on my journalistic career, helping to reinvigorate my mind and passion for the profession.

As I delved deeper into the travel details, I learned that the trip, sponsored by the Department of Economy and Tourism, Dubai, was to unveil their city’s technological advancements in AI (Artificial Intelligence).

Inside Dubai's AI Revolution
Chinenye at GITEX venue

Indeed, the opportunity to witness Dubai’s commitment to innovation and its embrace of cutting-edge technologies was a rare one. I was eager to explore the city’s futuristic landscape and learn more about its ambitious plans for the future.

My journey began with a seamless, visa-free experience, a testament to Dubai’s commitment to ease of travel.

Upon arriving in Dubai, I was immediately struck by the city’s modern architecture and bustling atmosphere.

It was as if I had left the newsroom and stepped into the future. The airport was a marvel of efficiency, with a seamless immigration process facilitated by facial recognition technology for regular visitors and human interaction for first-time visitors.

My hotel room was another revelation, equipped with a host of automated features that made everyday tasks a breeze.

First view inside the museum of the Future
First view inside the museum

The toilet flushed automatically, the lights responded to my movements, and even the curtains seemed to have a mind of their own. It was a surreal experience, a constant reminder that I was in a city where technology had seamlessly integrated into everyday life.

The highlight of my trip was GITEX Global, the world’s largest tech and startup show. Here, I witnessed the latest innovations. Artificial Intelligence was the undisputed star of the show. From AI-powered healthcare solutions to autonomous vehicles, the event showcased the transformative potential of AI across various industries.

The metaverse took center stage with immersive experiences and futuristic technologies. Attendees explored virtual worlds, interacted with digital avatars, and witnessed the potential of this emerging technology.

I was particularly impressed by Dubai’s commitment to becoming a global AI hub and its ambitious plans for the future.

One of the most memorable experiences was my visit to the Museum of the Future. This architectural masterpiece is a testament to Dubai’s forward-thinking approach to technology.

The building itself is a breathtaking sight. Its organic, flowing form, resembling a hovering spaceship, seems to defy gravity. As I stepped inside, I was greeted by a serene, futuristic atmosphere. The interior was bathed in soft, natural light, and the air was filled with a sense of anticipation.

Space station inside the museum in Dubai
Space station inside the museum

Stepping through its futuristic facade, visitors are transported to the year 2071, where cutting-edge technology and human ingenuity have reshaped our planet.

The museum’s seven floors are a journey through time, starting from the fifth floor and descending to the first. Each floor offers a unique experience, immersing visitors in different aspects of the future.

My visit to the Museum of the Future was a truly unforgettable experience. It was more than just a museum; it was a journey through time and a glimpse into the possibilities of the future.

As I left the building, I felt inspired and empowered, ready to embrace the challenges and opportunities that lie ahead.

first stop into the future
First stop into the future

During my trip, I also had the opportunity to attend a breakfast meeting where Nigerian government officials announced plans to host GITEX Nigeria in 2025. This announcement was a significant milestone for the Nigerian tech industry and a testament to the growing global recognition of Nigeria’s potential.

My trip to Dubai was more than just a tour; it was a glimpse into a future where technology is not merely a tool, but an integral part of our lives.

The city’s commitment to innovation, its focus on sustainability, and its embrace of cutting-edge technologies make it a model for the world.

As I left Dubai, I couldn’t help but feel inspired by the possibilities that the future holds both for Dubai and for the global tech community.

]]>
https://techeconomy.ng/inside-dubais-ai-revolution-a-journalists-perspective-on-the-technological-wave/feed/ 0
Best Cities for Business Networking https://techeconomy.ng/best-cities-for-business-networking/ https://techeconomy.ng/best-cities-for-business-networking/#respond Wed, 28 Aug 2024 07:11:47 +0000 https://techeconomy.ng/?p=141454 Lastest research by Loopex Digital has identified the best cities for business networking. 

The study analyzed several metrics, including the number of business events, the number of co-working spaces, private offices, meeting rooms, Speedtest Global Index, internet download speed (Wi-Fi), average hotel price for a one-night stay at a 5-star hotel, and the cost of living for a week(without rent). 

Data was retrieved from sources such as Numbeo, Speedtest.net, and Booking.com. The final score was based on the total number of business events, venues, and the Speedtest Global Index.

Findings summed up:

Best Cities for business networking
Top countries for business networking (Source: Loopex Digital)

London, United Kingdom, is the best city for business networking, with a composite score of 48.7. With more than 14,000 co-working spaces and 12,000 business events, London offers access to a community of like-minded individuals.

Ranking sixth on the Speedtest Global Index, London provides reliable internet connectivity. Additionally, a seven-day work trip will cost around $343, making it a prime destination for networking and collaboration.

With just 10 points behind, New York City, United States, follows with a composite score of 38.7. 

Offering professionals a platform to connect and establish valuable connections, NYC has more than 15,000 venues and hosts 12,000 business events annually. A night’s stay at a five-star hotel here costs an average of $511.

The third city to network is Sydney, Australia, with a composite score of 30.1. While it has nearly half the number of business venues compared to the Big Apple, Sydney still hosts nearly the same number of business events, providing ample opportunities to collaborate and network. A seven-day business trip here costs $285.

Singapore comes in fourth place on the list of best cities for business networking, scoring 27.7. With high-speed internet topping the Speedtest Global Index, Singapore is ideal for tech-focused professionals. Its average hotel price and weekly living cost make it an attractive destination for business travelers.

Rounding up the top five is Paris, France, with a composite score of 25.6.  The city hosts almost 2000 business events this year, offering numerous opportunities to connect and establish valuable connections. Paris has an internet speed of 243.47 Mbps.

Switzerland, Zurich claims the sixth position, with a composite score of 23.7. With almost 10K co-working spaces and private offices, the city hosts 480 business events. A one-week business trip to Zurich costs approximately $412, nearly the same as in NYC.

Berlin, Germany, is the seventh-best destination for networking, with a score of 22.7. The city offers a more active environment for business events than several other cities, hosting nearly 5,000 events this year. A one-night stay in a 5-star hotel in Berlin costs an average of $143.

Following closely is Amsterdam, Netherlands, with a composite score of 22.2. Compared to previous cities, Amsterdam has more than 10,000 meeting rooms and offers high-speed internet.

Dubai, United Arab Emirates, ranks as the ninth city for networking, with a composite score of 21.4. 

The city is a strong all-rounder, with over 10,000 private offices and hosting nearly 500 business events. Dubai offers the most affordable hotel prices on the list, with a one-night stay at a 5-star hotel costing just $82.

Auckland, New Zealand, closes the list with a composite score of 21.3. The city offers more than 9,000 co-working spaces and hosts 2,016 business events. A seven-day business trip to Auckland will cost an average of $273.

The spokesperson from Loopex Digital commented on the findings, “It’s inspiring to see professionals crossing borders to expand their networks and connect with like-minded individuals. Cities like London and New York City, with their numerous business events and venues, provide excellent platforms for such opportunities. These busy centers provide a variety of networking opportunities as well as valuable cultural experiences, which can help with personal and professional development.”

[Featured Image Credit]

]]>
https://techeconomy.ng/best-cities-for-business-networking/feed/ 0
Five Best Cities for Cybersecurity Jobs https://techeconomy.ng/five-best-cities-for-cybersecurity-jobs/ https://techeconomy.ng/five-best-cities-for-cybersecurity-jobs/#comments Thu, 18 Apr 2024 23:02:38 +0000 https://techeconomy.ng/?p=129394 With the inclusion of technology in so many aspects of our lives, there is an increased demand for cybersecurity jobs around the world.

But where could you earn the most if you’re looking to go into this lucrative field?

Trevor Cooke, the online privacy expert at EarthWeb, gives insight into which cities offer the most in terms of cybersecurity careers.

Five Best Cities for Cybersecurity Jobs
Source: EarthWeb

1. San Francisco

San Francisco has long been the tech capital of the United States since the inception of Silicon Valley in the early 1970s, so it is no surprise that it holds the number one place for the highest salaries for cybersecurity jobs in the world.

San Francisco has a consistent stream of new cybersecurity recruits with Stanford University and the University of California, Berkeley both located in the area. ‘Both schools have exceptional undergraduate cybersecurity programs, ranking 4th and 5th in the nation,’ says Trevor. ‘Many prospective students choose these schools so that they can graduate and immediately enter the tech workforce in the same city.’

When choosing a cybersecurity firm to work for, cybersecurity experts have the cream of the crop at their fingertips in San Francisco. Five out of the ten most valuable public cybersecurity companies in the world are headquartered in the area, so there are lots of job openings at all times as these companies continue to grow.

2. Boston

Boston is the current hub of cybersecurity conferences, hosting more than 15 conferences and summits on the topic. ‘This city brings in top cybersecurity experts from around the world to trade ideas and work together to build a safer world,’ says Trevor.

It is also home to the Massachusetts Institute of Technology (MIT), which currently ranks second in cybersecurity undergraduate degrees, as well as Harvard and Brandeis, other reputable research and technological schools.

The salaries in Boston are lower than in San Francisco, but on average, the city provides around 700 more jobs annually.

3. Dubai

As one of the two cities on this list located in the Middle East, Dubai has been rising in popularity, wealth, and cybersecurity expertise in recent years.

The cybersecurity infrastructure in Dubai is now ranked fifth in the world after their years of efforts to build robust cybersecurity programs, and they want to start sharing it with the rest of the world. ‘Because of how much research is being done into cybersecurity in Dubai, it is a very appealing place for experts in the field,’ says Trevor.

4. Washington D.C.

Washington D.C. is on the cusp of cybersecurity greatness with by far the most yearly job openings. Trevor states, ‘Although salaries are the lowest in this city compared to the other four, Washington D.C. is a great place to start a career in cybersecurity and work your way up to a higher salary.’

Apart from the great social aspects of living in Washington D.C., residents live amongst lawmakers and politicians who are making decisions about cybersecurity and cyberthreats every day.

This offers a unique perspective for those working in the industry, as well as the chance to influence those key decisions.

Five Best Cities for Cybersecurity Jobs
Source

5. Tel Aviv

Israel’s government has invested a lot into creating a cybersecurity hub in Tel Aviv. ‘It was also the first country to offer a PhD in Cybersecurity as an independent discipline,’ notes Trevor,  ‘which brought a lot of prospective students to the region to further their education.’

Israel’s cybersecurity approach can be described as a proactive, comprehensive, and long-term cybersecurity strategy, focused not on potential attackers but on potential threats.

For these reasons, many cybersecurity experts feel it is the best place to be for the future of cybersecurity.

[Featured Image Credit]

]]>
https://techeconomy.ng/five-best-cities-for-cybersecurity-jobs/feed/ 1
Recovery of Naira Linked to $7bn FX Backlog Clearance, BDCs React https://techeconomy.ng/recovery-of-naira-linked-to-7bn-fx-backlog-clearance-bdcs-react/ https://techeconomy.ng/recovery-of-naira-linked-to-7bn-fx-backlog-clearance-bdcs-react/#respond Tue, 02 Apr 2024 06:30:08 +0000 https://techeconomy.ng/?p=128230 The gradual recovery of Nigeria’s currency, the naira, in the last few weeks has been accredited to more investment in government instruments, clearance of $7 billion forex backlog forward commitments and the recall of the BDCs at the retail end of the forex market.

The Association of Bureaux de Change Operators of Nigeria (ABCON), who disclosed this on Monday, applauded the decision of the Central Bank of Nigeria (CBN) led by Olayemi Cardoso to recall BDCs into the mainstream FX market, describing it as a major factor in ongoing exchange rate stability.

Dr. Aminu Gwadabe, ABCON’s president, was full of gratitude to the CBN and other related agencies for the recognition of BDCs as the third leg of the foreign exchange market and an effective exchange rate trans­mission mechanism in forex management. ­

He said,

“The reconsideration of the BDCs into the mainstream foreign exchange market has not only demystified illegal econom­ic behaviours such as hoarding, rent seeking, round tripping and FX holding position, but also led to the emergence of exchange rate convergence.”

Gwadabe said that the stability in the exchange rate has already started to have a positive impact on the prices of goods and services.

He noted that for instance the price for international school fees has dropped by 15 percent; cost of medical tourism reduced by 20 percent and prices of air fares for local and international trips dipped by 25 percent.

“The current developments in the foreign exchange market has started reining in inflation as prices of most necessities are becoming relatively lower in the market. In a more serious note, the positive impacts include also heightened confidence of the public in the local currency as it eliminates currency substitution behaviour which hitherto added pressure on our local currency”, he added.

Gwadabe said the success sto­ry is unending as naira traded at N1,255/$ on Saturday, even lower than N1,269.765 rates BDCs were advised to sell.

Describing the ongoing mar­ket development as revolutionary, Gwadabe said stable naira will attract more foreign portfolio in­flows to the economy.

He said the naira has appre­ciated from February low of N1,915/$ to N1,255/$, representing N660 gain, which is significant by all measures.

He said the gains of the CBN under Cardoso to recognise the power of BDCs in securing stable exchange rate cannot be overem­phasised.

He also said that previous practice where people took dol­lars from Nigeria to Dubai for hoarding has ceased.

Gwadabe said that today, fol­lowing the rapid recovery of the naira against the dollar, the pur­chase of dollars in Dubai is cheap­er than in Nigeria and therefore created business opportunities for dollar inflows rather than outflows to the economy.

Going forward, he said that prospects for forex earnings are promising, with foreign portfolio investments on the rise and over $1.5 billion inflows few days after the Monetary Policy Committee (MPC) raised interest rate by 200 basis points.

He said increases in foreign exchange inflows into the econo­my through the CBN’s monetary instruments is helping to boost foreign reserve accretion and gives the apex bank the necessary power to continue to defend the local currency.

“It is our view that the collab­oration between the BDCs, CBN, National Security Adviser, the Economic and Financial Crimes Commission (EFCC), as well as support from the Presidency helped in creating the opportu­nity for building the foundation of this achievement. Overall, the combination of these actions have induced an atmosphere of public calmness, confidence, hopes and liquidity in the mar­kets.

“We therefore call on the CBN to continue to calibrate the existing relationship between the BDCs and the apex bank to sus­tain the success story,” he advised.

On the recent reforms in the financial industry, the ABCON chief reiterated the resolve of ABCON to continually collabo­rate with the CBN in carrying all its members along in achieving a win-win situation.

He said this is expected to help in safeguarding investments, har­nessing skills of BDC operators and boosting employment within the financial services sector.

]]>
https://techeconomy.ng/recovery-of-naira-linked-to-7bn-fx-backlog-clearance-bdcs-react/feed/ 0