Naira’s upward trajectory against the United States Dollar, marks a steady appreciation trend in the foreign exchange market. On Thursday, the Naira gained N18 to close at 1,382/$ at the official market, showcasing its resilience amidst currency fluctuations. This shows a continuous and steady upward movement against Dollar in the Nigerian Foreign Exchange.
This positive development comes in the wake of concerted efforts by the Central Bank of Nigeria (CBN) to address foreign exchange challenges and enhance market stability. Consequently, the CBN’s resolution of foreign exchange backlogs, amounting to $7 billion, has played a significant role in bolstering confidence in the Naira.
Moreover, the Presidency issued a stern warning to currency speculators, urging them to desist from activities that undermine the national currency. This move aims to deter speculators from engaging in unpatriotic acts that could destabilize the foreign exchange market.
Additionally, data from the FMDQ Securities Exchange Limited revealed that the Naira appreciated by 1.3 percent, attributed to increased dollar supply at the Nigerian Autonomous Foreign Exchange Market (NAFEM). This uptick in dollar supply contributed to the Naira’s strengthening position against the Dollar.
Moreover, the CBN’s effective resolution of FX backlogs, as verified by its acting director of corporate communications, is crucial. This settlement of $1.5 billion in obligations to bank customers cleared the remaining FX backlog, facilitating improved market dynamics.
Moreover, Nigeria’s external reserves showed sustained growth, rising by 3.62 percent to $34.37 billion as of March 12, 2024, compared to the previous month. This increase in reserves reflects positive economic indicators and reinforces the Naira’s stability in the foreign exchange market.
Additionally, Diaspora remittances also witnessed a remarkable surge, soaring by 433 percent to $1.3 billion in February. This surge in remittances contributed to strengthening the Naira and bolstering its value against major foreign currencies.
Additionally, the Special Adviser highlighted the Naira’s anticipated rise, urging speculators to sell dollars to avoid losses. Consequently, CBN’s efforts and interventions improved market conditions.
Overall, the Naira’s stable appreciation against the Dollar reflects a positive outlook, indicating increased market stability and investor confidence.
Follow us on Socials: