?The nation’s currency, Naira, is making a steady and sustained gain against the dollar in the last one week, closing at N1, 382 to a dollar at the official market on Friday.
The Naira gain came a day after the local currency recorded major gains at both the official and parallel foreign exchange markets. It closed at the black market at N1, 400/dollar on Wednesday.
The summary of the FX trading auction revealed that naira appreciated by 1.3 percent following increased dollar supply at the Nigerian Autonomous Foreign Exchange Market, according to data from the FMDQ Securities Exchange Limited.
The intra-day high closed at N1, 598 per dollar on Thursday, stronger than N1, 620 it closed at on Wednesday. Also, the intraday low strengthened to N1, 300/$ on the same day, stronger than N1, 350/$1 it closed at on the previous day.
?The dollar supplied by FX market players increased to $288.47, an increase of $2 or 7.46 percent from $268.29 million recorded on Wednesday from $195.13 million at NAFEM.
In the recent weeks, the currency has gained N500 against the dollar from it record low this year at the unofficial market, as the CBN builds confidence in FX market.
The Central Bank of Nigeria, (CBN) declared, on Wednesday, that it has successfully resolved all valid foreign exchange backlogs, as pledged by Governor Olayemi Cardoso, addressing inherited claims amounting to $7bn.
Acting Director of Corporate Communications, Hakama Sidi Ali, conveyed this information in a statement sent via mail. She stated that the CBN finalised the payment of $1.5 billion to settle obligations to bank customers, thereby clearing the remaining balance of the FX backlog.
Cardoso emphasised the priority of clearing the FX backlog to enhance credibility and confidence in the Nigerian economy.
?The strain on the naira/dollar exchange rate is gradually diminishing, with Nigerias external reserves showing sustained growth over the past month.
According to data from the CBN, foreign currency reserves rose by 3.62 percent to $34.37 billion as of March 12, 2024, compared to $33.17 billion recorded at the beginning of February 2024. Additionally, the CBN reported a significant surge in Diaspora remittances, which skyrocketed by 433 percent to $1.3 billion in February, compared to $300 million in January.
