The naira continues to strengthen against the United States dollar, marking a significant gain of N43 to open at 1,405/$ at the official market. This positive trend follows a stern warning from the Presidency directed at currency speculators, cautioning them against actions detrimental to the national currency.
The surge in the naira’s value came as a relief, with Friday seeing little loss gains both at the official and parallel foreign exchange markets, closing at N1,448/dollar in the informal market compared to Thursday’s N1410/dollar.
Market players injected $288.47 million into the FX market, reflecting a notable increase from the previous day’s $268.29 million, indicating growing confidence in the forex market.
In a bid to strengthen the currency, the Central Bank of Nigeria (CBN) announced the resolution of all valid foreign exchange backlogs, amounting to $7 billion. Governor Olayemi Cardoso affirmed the successful settlement, underscoring the importance of clearing FX obligations to boost economic credibility and confidence.
Moreover, Nigeria’s external reserves witnessed a steady rise, reaching $34.37 billion as of March 12, 2024, compared to $33.17 billion recorded in February. The surge in Diaspora remittances, soaring by 433 percent to $1.3 billion in February, further contributed to bolstering the country’s forex reserves.