Connect with us
Padiwise Banner

Breaking News

Naira Strengthens Against Dollar Amid CBN’s Forex Backlog Clearance

Published

on

The Nigerian naira witnessed a significant rebound against the United States dollar on Wednesday in both official and parallel markets, as the Central Bank of Nigeria (CBN) successfully cleared all valid foreign exchange backlogs, a move long awaited by market stakeholders.

The Acting CBN Director of Corporate Communications, Mrs. Hakama Sidi Ali, announced in Abuja that the bank had settled an inherited backlog of $7 billion in claims, with $1.5 billion recently cleared.

This action aligns with the commitment of CBN Governor, Mr. Olayemi Cardoso, to enhance forex market liquidity.

In the parallel market, the naira strengthened to 1,410/dollar, while the official rate at the Nigerian Autonomous Foreign Exchange Market (NAFEM) stood at N1,492/dollar.

This improvement represents a 4.5 percent increase at NAFEM and a 13.5 percent rise in the black market from the previous day’s rates.

Market analysts attribute the naira’s gain to a decline in demand from forex speculators, following a series of strategic measures by the CBN to stabilize the currency.

Recent CBN directives and the enforcement actions against illegal Bureau De Change (BDC) operators by the Economic and Financial Crimes Commission (EFCC) in Lagos, Abuja, and Kano have also played a crucial role in curtailing market volatility.

Local BDC operators reported varied trading activities, with rates ranging from N1,400 to N1,500 per dollar, reflecting the market’s response to the evolving forex landscape.

Despite the naira’s recent gains, some traders expressed concerns over potential losses, especially those who purchased dollars at higher rates.

In Lagos, the sentiment was mixed as traders noted a decrease in dollar demand, attributing it to the CBN’s renewed dollar sales to BDC operators at lower rates.

Predictions from market participants suggest that the naira could strengthen further if the current trend persists.

The PUNCH’s investigation revealed a substantial increase in forex turnover at the official market, with a total of $11.43 billion traded within two months, marking a significant rise from previous periods.

This boost in market activity follows comprehensive reforms by the CBN, including the introduction of a two-way quote system and adjustments in the BDC segment to promote transparency and price discovery.

As Nigeria’s external reserves grow, reaching $34.37 billion in March 2024, the pressure on the naira/dollar exchange rate eases, reflecting the positive outcomes of the CBN’s forex policies.

Furthermore, a dramatic increase in Diaspora remittances, reported at $1.3 billion in February, indicates a robust inflow of foreign currency, bolstering the naira’s position against the dollar.

Disclaimer: We sell any type of script/themes/plugins, we also offer web design/developement, graphics design, SEO, Social media followers, VTU Platform and more. visit our contact page to get in touch with us or WhatsApp (+234) 08114313795.
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Entertainment

Entertainment2 days ago

Mr Ibu’s Daughter, Chioma Jasmine Okafor: Biography , State Of Origin , Husband, Education

Chioma Jasmine Okafor, born on November 10, 1994, in Anambra State, is the adopted daughter of Nollywood actor, John Okafor,...

Entertainment3 days ago

Meet Atobiloye Kelvin, Kizz Daniel’s Body Guard And Bouncer

Meet Atobiloye Kelvin: The Unyielding Guardian of Kizz Daniel’s Safety In the glittering world of Afrobeats, where fame and adulation...

Entertainment3 days ago

Damian Lillard and Kay’La Hanson Battle For Custody Of Children After Divorce

Damian Lillard and Kay’La Hanson Battle for Sole Custody: A Heartfelt Tug-of-War for the Children’s Best Interests In the midst...

Entertainment3 days ago

Dr. Preye Ziko Bob-Manuel Receives ForbesBLK Recognition For Her Work In The Real Estate Space, Beauty Industry, And More

Empowering Dreams: Dr. Preye Ziko Bob-Manuel was Inducted into ForbesBLK Community. Celebrating Dr. Preye Ziko Bob-Manuel’s Remarkable Achievements In the...

Entertainment1 month ago

Complete Guide: Hotel Jobs in Canada with Visa Sponsorship

Hotel Jobs in Canada with Visa Sponsorship   Welcome to a world of exciting opportunities in the heart of hospitality!...

Entertainment2 months ago

Truck Drivers Jobs In Canada With Visa Sponsorship

Truck Drivers Jobs In Canada With Visa Sponsorship   This is a great opportunity for aspiring truck drivers! Explore the...

Entertainment2 months ago

American Visa Lottery Sponsorship Program: What You Need To Know

American Visa Lottery Sponsorship Program: What You Need To Know   Welcome to a comprehensive guide on the American Visa...

Entertainment2 months ago

Cleaning Jobs in USA with Visa Sponsorship – APPLY NOW

Cleaning Jobs in USA with Visa Sponsorship – APPLY NOW   Check out cleaning jobs in the USA with visa...

Entertainment2 months ago

U.S. Visa Sponsorship Opportunities in 2024/2025 – Apply Now

U.S. Visa Sponsorship Opportunities in 2024/2025 – Apply Now   Explore career opportunities in the U.S. with evolving international talent...

Entertainment2 months ago

Fully Funded University of Miami Stamps Scholarship 2024/2025

If you are looking for scholarships, then you should check out an exciting opportunity for aspiring scholars! The University of...