Naira Rises by 4.55% after CBN Clears FX Backlog

Following the Central Bank of Nigeria’s (CBN) clearance of outstanding foreign exchange orders, the naira has appreciated by 4.55% to N1,492.61 per dollar. This marks a significant strengthening of the currency on the Nigerian Autonomous Foreign Exchange Market (NAFEM), and reflects the increased supply of dollars.

According to the report, the naira continued to strengthen against the dollar, hitting an intraday high of N1,620/$ on Wednesday. This marks a significant improvement from the intraday low of N1,350/$ on the same day. The increased dollar supply at NAFEM, up 37.49% from the previous day, has helped support the currency.

In addition, the CBN’s successful resolution of outstanding foreign exchange claims has given the market further confidence. The CBN declared that a total of $7 billion of inherited claims had been successfully resolved, in line with the CBN Governor’s pledge to clear all valid foreign exchange backlogs. Cardoso has taken a proactive approach to addressing the issue and stabilizing the market.

March 21, 2024