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Naira Surges as Exchange Rate Strengthens to N1,453 Against Dollar in Official Market

The Nigerian currency, the naira, witnessed a significant surge of over N80 against the US dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEM) on Thursday, March 21, 2024. This surge came following the Central Bank of Nigeria’s (CBN) announcement that it had successfully cleared all valid FX backlogs.

 

Data sourced from NAFEM revealed that during mid-day trading, the naira traded at N1,382.35 per dollar before closing at N1,453 per dollar. This represents a notable improvement compared to its closing rate on Wednesday, March 20, 2024, which stood at N1,536.83.

 

This development marks a remarkable 10% gain by the Nigerian currency against the dollar, coinciding with a surge in Forex inflow which amounted to $288.47. Traders quoted the intraday exchange rate with a high of N1,598.00 and a low of N1,300 per dollar.

 

On Wednesday, March 20, the Central Bank disclosed that it had cleared a backlog of $7 billion in claims. According to CBN’s Acting Director of Corporate Communications, Hakama Sidi Ali, this included $1.5 billion aimed at offsetting obligations to bank customers. Ali further explained that independent auditors from Deloitte Consulting were engaged to assess transactions, ensuring that only genuine claims were honored.

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Reportedly, CBN Governor Olayemi Cardoso stressed the significance of clearing the FX backlog, which analysts believed was negatively impacting the naira. Cardoso emphasized the importance of restoring credibility and confidence in the Nigerian economy. He stated, “We prioritized clearing the FX backlog to restore credibility and confidence in the Nigerian economy. This encumbrance to market confidence in the country’s ability to meet its obligations is behind us.”

 

In conclusion, the priority of clearing the FX backlog was underscored as crucial for enhancing credibility and confidence in the Nigerian economy by CBN Governor Olayemi Cardoso.

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Written by Realinfoteam

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