The Nigerian naira witnessed a remarkable turnaround against the US dollar on Wednesday, gaining strength in both official and informal markets. This surge, particularly pronounced in the black market, signals a positive shift for the country’s currency.
The Central Bank of Nigeria (CBN) fulfilled a significant promise made by Governor Olayemi Cardoso to address the backlog of foreign exchange claims, which stood at $7 billion. Acting CBN Director of Corporate Communications, Mrs. Hakama Sidi Ali, confirmed the final settlements of these backlogs in Abuja.
Recent data from the FMDQ Securities Exchange revealed that the naira closed trading at 1,410/dollar in the parallel market and N1,492 in the official Nigerian Autonomous Foreign Exchange Market. This represents a substantial appreciation compared to previous rates, with a 4.5% increase at the official market and a remarkable 13.5% surge in the parallel market.
The improved exchange rate can be attributed to various factors, including the CBN’s efforts to crack down on currency speculators and illegal activities in the foreign exchange market. By implementing stringent measures, the CBN has effectively stabilized the naira and reduced its volatility.
Furthermore, the Economic and Financial Crimes Commission (EFCC) has intensified its efforts to combat illegal Bureau De Change (BDC) operators in major cities like Lagos, Abuja, and Kano. This crackdown has further contributed to restoring confidence in the naira and reducing speculative activities.