Naira Appreciates Further To ₦1,453 At Official Market

Naira continued its appreciation in the foreign exchange market closing trading at ₦1,453.28/$1 at the official market on Thursday, 21 March 2024.

This means it recorded ₦39, reflecting 2.6 per cent gain from Wednesday’s closing rate of ₦1,492.61 according to Nigerian Autonomous Foreign Exchange Market (NAFEM), data published by the FMDQ Securities Exchange Limited.

The data showed that trading witnessed an intraday high of ₦1,598.00 and low of ₦1,300.

Forex turn over amounted to $288.47, an increase of $20.18 or 7.5 per cent from $268.29 million on Wednesday.

At the parallel market, the rate of dollar exchange with naira has also dropped.

On Wednesday, the naira closed trading at ₦1,410/dollar at the parallel market.

Some black market operators in Lagos, who spoke to Prime Business Africa on Thursday said they exchanged $1 for ₦1,470.

The recent appreciation of the naira in the foreign exchange market has been attributed to sustained efforts by the Central Bank of Nigeria (CBN) aimed at stabilising value of the local currency that has tumbled in the past nine months since the floatation that led to its devaluation.

The rising value of the currency also came at a time the CBN announced that it has cleared all valid forex backlog claims.

READ ALSO: Naira Rebound To N1,400, CBN Clearing Of FX Backlogs: It’s Not Yet Time For Celebration – Expert  

The apex bank had earlier disclosed that it inherited $7 billion forex backlog debt.

According to data from the CBN, foreign currency reserves rose by 3.62 percent to $34.37 billion as of March 12, 2024, compared to $33.17 billion recorded at the beginning of February 2024.

Additionally, the CBN reported a significant surge in Diaspora remittances, which skyrocketed by 433 percent to $1.3 billion in February, compared to $300 million in January.

Also noticeable is the Near-zero gap between the official and parallel markets which foreign currencies are traded.

Some analysts say the reason naira is begining to gain lately is because speculators have begun to dump their dollar stocks, following waning demand by prospective buyers amid CBN clampdowns.

Meanwhile, the Special Adviser on Information and Strategy, Bayo Onanuga, had while commenting on CBN clearing the $7 billion backlog, cautioned currency traders speculating on foreign exchange to sell their dollar holdings, stating that the naira is expected to increase in value soon.

Onanuga said: “With backlog FX settled, Naira is set to appreciate further, faster. Currency speculators should quickly dump their stock of dollars to avoid sorrows and tears.”