The naira continues to strengthen against the United States dollar, marking a significant gain of N18 to close at 1,382/$ 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 Wednesday seeing remarkable gains both at the official and parallel foreign exchange markets, closing at N1,400/dollar in the informal market.
Data from the FMDQ Securities Exchange Limited revealed that the naira appreciated by 1.3 percent, reaching an intraday high of N1,598 per dollar and a low of N1,300/$ on Thursday. This growth was attributed to increased dollar supply in the Nigerian Autonomous Foreign Exchange Market.
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.