Alhaji Aminu Gwadabe, President of the Association of Bureaux De Change Operators of Nigeria (ABCON), has said that the trade wars between China and the united states of America (US) has led to an increase in the price of crude oil, which is considered to be beneficial to the Nigerian naira as well as economy.
Aminu Gwadabe stressed that since the beginning of April this year, the prices of oil have remained above $70/barrel as trade wars continue. He said that the United States sanctions on Iran and Venezuela have tightened the supply of crude oil to the market, putting upward pressure on the prices of oil.
According to ABCON chief, Washington had as of last week, raised tariffs on Chinese imports worth $200 billion to 25 percent from the previous rate of 10 percent, which pushed the affected consumer goods prices higher up.
“The rising oil prices as a result of tension in the Persian Gulf and the increasing trade wars between two world economic giants, China and America will help to take the naira to another next level of stability. I advise the federal government and the Central Bank of Nigeria (CBN) to take advantage of the two crises- trade tensions and rise in crude oil prices by introducing that will support growth and development opportunities,” he quoted to have said in a statement.” He stated.
Gwadabe added that with the exchange rate stability being witnessed in the market, the target of the central bank should be to have a single digit interest rate that would kick start business growth as well as stimulation of economic activities in the state.
He explained that the strategy Nigeria was expected to pursue, was already being practiced by Russia and the Asian countries which involved utilizing their Yuan Swap agreement with China for the strengthening of their local currency.
Gwadabe did not fail to stress the need for intensified efforts by fiscal authorities in empowering the youths job creation. according to him;
“The ABCON Executive Council under my leadership will continue to promote improved capacity and technological advancement among BDC operators. We are also committed to better skills acquisition for BDC operators to elevate them to viable monetary regulatory partners and lead player in exchange rate stability.”