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  • Updated: February 05, 2024

Don't hoard dollars — Standard Chartered Bank to Nigerians

Don't hoard dollars — Standard Chartered Bank to Nigerians

Nigerians have been advised by Standard Chartered Bank not to hoard dollars at this point due to the volatility in the foreign exchange market.

The bank gave the advice during its global market outlook on Friday.

Speaking at the event, Ayodeji Adelagun, the Head of Financial Markets & Rates & Credit Trading, West Africa, said that given the unstable naira, that was the time to buy only as many dollars as required for use per time.

Adelagun said, “This is not the time to speculate, it’s not time to stockpile. It’s time to get only what you need. If you need to pay for something, buy what you need and move on.”

According to him, the volatility seen with the naira is a result of attempts by the Central Bank of Nigeria to mop up excess liquidity.

“The central bank is trying to mop up as much liquidity as possible to reduce the volume of cash chasing FX.

“The moment we will begin to get to normalcy and FX liquidity is available, and then we will begin to see the effects of some of these policies right now. So, everything is a derivative of FX management.

“In getting to the point where liquidity should improve, foreign portfolio investors are likely to get interested in Nigeria and there is a chance that we can raise money through the Eurobond."

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