Naira appreciates to N791/$1 in official market
The Nigerian naira appreciated against the United States American dollar, closing at N791.75/$1 at the official market.
According to data from the FMDQ Securities Exchange, the Nigerian naira closed at N791.75/$1 at the official market, marking a 5.87 per cent or N49.39 increase compared to the previous day’s rate of N841.14/$.
The Central Bank of Nigeria’s recent efforts to clear some of its foreign exchange backlog contributed to the naira’s gain.
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During trading, the highest bid for the dollar was N1120/$1, while the intraday low was N701/$1, representing a significant spread of N419/$1. The forex turnover at the close of trading was $157.78m.
Following the CBN’s announcement of clearing the backlog of foreign exchange forward contracts, experts anticipate relief for the naira, the business community, and the overall economy.
This move aims to address the persistent dollar shortages faced by the country since the exit of foreign investors from local assets.
The payments made by the Central Bank follow the finance minister’s announcement of expecting $10bn of inflows to enhance FX market liquidity, which is expected to alleviate the chronic dollar shortages in Africa’s largest economy.
In response to the CBN’s clearance of forex backlog, Gabriel Idahosa, deputy president of Lagos Chamber of Commerce and Industry, expressed confidence that the move will restore confidence in the traditional market, bring back letters of credit, portfolio investors, international airlines, and foreign direct investments.