Nigeria: Naira Surges by 4.55% as CBN Resolves FX Backlog

Following the Central Bank of Nigeria’s (CBN) clearance of outstanding foreign exchange orders, the naira has appreciated by 4.55%, reaching N1,492.61 per dollar. This significant strengthening of the currency on the Nigerian Autonomous Foreign Exchange Market (NAFEM) reflects the increased availability of dollars.

Reports indicate that the naira’s upward momentum persisted against the dollar, reaching an intraday high of N1,620/$ on Wednesday. This noteworthy improvement contrasts with the intraday low of N1,350/$ recorded earlier on the same day. The enhanced dollar supply at NAFEM, up by 37.49% from the previous day, has played a crucial role in bolstering the currency.

Furthermore, the successful resolution of outstanding foreign exchange claims by the CBN has instilled further confidence in the market. The CBN announced the successful resolution of a total of $7 billion in inherited claims, aligning with the pledge made by the CBN Governor to clear all valid foreign exchange backlogs. This proactive approach adopted by Cardoso has been instrumental in addressing the issue and fostering market stability.