Naira Strengthens to N1,382 Against Dollar as Presidency Warns Speculators

The Nigerian naira continued its upward trajectory against the United States dollar, reaching N1,382/$ at the official market, marking an increase of N18.

The Presidency issued a stern warning to currency speculators, urging them to refrain from undermining the national currency, emphasizing that those engaging in such activities would face consequences.

This surge in the naira’s value follows a significant rise in both official and parallel foreign exchange markets, with the currency closing at N1,400/dollar on Wednesday at the black market.

Data from the FMDQ Securities Exchange Limited revealed a 1.3 percent appreciation of the naira, attributed to increased dollar supply at the Nigerian Autonomous Foreign Exchange Market.

The intraday high for the naira stood at N1,598 per dollar, while the intraday low strengthened to N1,300/$ on Thursday, showcasing the currency’s resilience.

FX market players contributed to the boost, increasing dollar supply to $288.47 million, a notable rise from the previous day’s $268.29 million.

The Central Bank of Nigeria announced the resolution of all valid foreign exchange backlogs, addressing obligations amounting to $7 billion, a move aimed at bolstering confidence in the FX market.

CBN’s acting director of corporate communications, Hakama Sidi Ali, confirmed the completion of payments totaling $1.5 billion to settle bank customers’ obligations, effectively clearing the FX backlog.

Governor Olayemi Cardoso reiterated the importance of clearing the backlog to restore credibility and confidence in Nigeria’s economy.

External reserves have shown sustained growth, reaching $34.37 billion as of March 12, 2024, a 3.62 percent increase from the beginning of February.

Diaspora remittances surged by 433 percent to $1.3 billion in February, signaling positive economic indicators.

Special Adviser on Information and Strategy, Bayo Onanuga, advised currency traders to sell off their dollar holdings in anticipation of further naira appreciation.

Recent CBN interventions and crackdowns on illegal activities in the foreign exchange market have contributed to the naira’s stability and reduction in volatility.

The naira closed trading at N1,410/dollar at the parallel market and N1,492 at the official Nigerian Autonomous Foreign Exchange Market, reflecting increased confidence and reduced speculative activities.