NAIRA STRENGTHENS, REACHING N1,382/DOLLAR IN OFFICIAL MARKET.

The naira saw a consistent rise against the United States dollar on Thursday, gaining N18 to reach 1,382/$ at the official market.

This appreciation in the naira’s value followed significant gains recorded by the local currency in both the official and parallel foreign exchange markets a day earlier, with a closing rate of N1,400/dollar on Wednesday in the black market.

A summary of the FX trading auction indicated a 1.3 percent increase in the naira’s value due to heightened dollar supply at the Nigerian Autonomous Foreign Exchange Market, as reported by data from the FMDQ Securities Exchange Limited.

On Thursday, the intraday high settled at N1,598 per dollar, stronger than the N1,620 recorded on Wednesday, while the intraday low strengthened to N1,300/$, surpassing the N1,350/$1 from the previous day.

The supply of dollars by FX market players rose to $288.47 million, marking a $2 increase or 7.46 percent from the $268.29 million recorded on Wednesday at the NAFEM.

In recent weeks, the naira has gained N500 against the dollar from its record low this year in the unofficial market, as the CBN works to bolster confidence in the FX market.

The Central Bank of Nigeria announced on Wednesday the successful resolution of all valid foreign exchange backlogs, addressing inherited claims amounting to $7 billion as pledged by Governor Olayemi Cardoso.

Hakama Sidi Ali, CBN’s acting director of corporate communications, conveyed this information, stating that the CBN finalized the payment of $1.5 billion to settle obligations to bank customers, thereby clearing the remaining balance of the FX backlog.

However, the Presidency cautioned currency speculators against unpatriotic acts targeting the national currency, warning that racketeers would face consequences.

Cardoso stressed the importance of clearing the FX backlog to enhance credibility and confidence in the Nigerian economy.

Source: Adetunji Tobi; Techeconomy