Naira Appreciates Against Dollar, Closes at 1,382/$

Taiwo Ajayi
4 Min Read
The naira maintained a steady appreciation against the United States dollar on Thursday, gaining N18 to close at 1,382/$ at the official market.

This positive development followed major gains recorded by the local currency at both the official and parallel foreign exchange markets, where it closed at N1,400/dollar on Wednesday.

The Presidency issued a warning to currency speculators, urging them to desist from acts against the national currency, as racketeers would face consequences for their actions.

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The FX trading auction revealed a 1.3 percent appreciation of the naira, attributed to increased dollar supply at the Nigerian Autonomous Foreign Exchange Market, according to data from the FMDQ Securities Exchange Limited.

The intraday high for the naira closed at N1,598 per dollar, while the intraday low strengthened to N1,300/$ on the same day. FX market players increased dollar supply to $288.47, up from $268.29 million recorded on the previous day.

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The Central Bank of Nigeria (CBN) successfully resolved all valid foreign exchange backlogs, clearing obligations totaling $7 billion. Governor Olayemi Cardoso emphasized the importance of clearing the FX backlog to enhance credibility and confidence in the Nigerian economy.

The strain on the naira/dollar exchange rate is gradually diminishing, with Nigeria’s external reserves showing sustained growth. 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.

Diaspora remittances also surged by 433 percent to $1.3 billion in February, compared to $300 million in January.

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Special Adviser on Information and Strategy, Bayo Onanuga, advised currency traders speculating on foreign exchange to sell their dollar holdings, as the naira is expected to appreciate further soon.

The recent clampdowns on the activities of illegal BDC operators in Lagos, Abuja, and Kano by the Economic and Financial Crimes Commission have helped to reduce the volatility of the naira.

The naira maintained a steady appreciation against the United States dollar on Thursday, gaining N18 to close at 1,382/$ at the official market. This positive development followed major gains recorded by the local currency at both the official and parallel foreign exchange markets, where it closed at N1,400/dollar on Wednesday.

The Presidency issued a warning to currency speculators, urging them to desist from acts against the national currency, as racketeers would face consequences for their actions.

The FX trading auction revealed a 1.3 percent appreciation of the naira, attributed to increased dollar supply at the Nigerian Autonomous Foreign Exchange Market, according to data from the FMDQ Securities Exchange Limited.

The intraday high for the naira closed at N1,598 per dollar, while the intraday low strengthened to N1,300/$ on the same day. FX market players increased dollar supply to $288.47, up from $268.29 million recorded on the previous day.

The Central Bank of Nigeria (CBN) successfully resolved all valid foreign exchange backlogs, clearing obligations totaling $7 billion. Governor Olayemi Cardoso emphasized the importance of clearing the FX backlog to enhance credibility and confidence in the Nigerian economy.

The strain on the naira/dollar exchange rate is gradually diminishing, with Nigeria’s external reserves showing sustained growth. 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.

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