National Telescope national telescope newspaper
The value of the naira against the US dollar on Thursday continued to rise steadily, adding N18 to settle at 1,382/$ at the official market.
As a result, the Federal Government warned currency speculators, threatening to burn their fingers if they committed acts of patriotism against the national currency.
The local currency saw significant increases at the official and unofficial foreign exchange markets the day before the naira’s increase. On the underground market, it ended on Wednesday at N1,400 per dollar.
Based on information from the FMDQ Securities Exchange Limited, the summary of the FX trading auction showed that the naira strengthened by 1.3 percent as a result of more dollars being available on the Nigerian autonomous foreign exchange market.
Thursday’s intraday high, which concluded at N1,598 per dollar, was higher than Wednesday’s closing value of N1,620. Additionally, that day’s intraday low rose to N1,300/$, surpassing the previous day’s closing value of N1,350/$1.
The dollar supplied by participants in the foreign exchange market surged to $288.47, up $2, or 7.46 percent, from $268.29 million on Wednesday and $195.13 million at NAFEM.
As the CBN restores faith in the foreign exchange market, the naira has strengthened against the dollar in recent weeks, recovering from its record low this year in the unofficial market.
As promised by Governor Olayemi Cardoso, the Central Bank of Nigeria announced on Wednesday that it had effectively settled all legitimate foreign exchange backlogs, addressing inherited claims totaling $7 billion.
This was made known in a statement from CBN’s acting director of corporate communications, Hakama Sidi Ali. According to her, the CBN completed paying $1.5 billion to repay debts owed to bank clients, which cleared the remaining amount of the foreign exchange backlog.
Cardoso stressed how important it is to pay off the foreign exchange debt to boost trust and credibility in the Nigerian economy.
Nigeria’s external reserves have grown steadily over the past month, which has eased the pressure on the naira/dollar exchange rate.
The CBN reports that as of March 12, 2024, foreign currency reserves stood at $34.37 billion, up 3.62 percent from $33.17 billion at the start of February 2024.
Furthermore, the CBN announced a notable increase in remittances from the Diaspora. Which, from $300 million in January, soared by 43 percent to $1.3 billion in February.
Currency dealers who are betting on foreign exchange should liquidate their dollar holdings, advises Special Adviser on Information and Strategy Bayo Onanuga, as the naira is predicted to appreciate in value shortly.
Speculators should sell off their dollars quickly to avoid possible losses, he warned.
Onanuga declared, “The naira is expected to appreciate even more quickly now that the backlog FX has been resolved.” To prevent sadness and tears, currency speculators should swiftly sell their dollar holdings.
Based on information gathered from the FMDQ Securities Exchange, the naira ended trading on Wednesday at 1,410/dollar at the parallel market and N1,492 at the official Nigerian Autonomous Foreign Exchange Market.
The naira’s gain in the official market is equivalent to an appreciation of N68, or 4.5 percent, over the N1,560/$1 reported at NAFEM on Tuesday. In the parallel market, the gain is equivalent to N190, or 13.5 percent.
Due to CBN clampdowns and declining demand from potential buyers, speculators have started selling their dollar stocks, which has resulted in a recent increase in the value of the naira.
In recent weeks and months, the Central Bank of Nigeria has released several circulars that have assisted in sealing leaks and closing gaps that had previously been exploited by money speculators and racketeers.
Additionally, the Economic and Financial Crimes Commission agents’ recent crackdowns on the operations of illicit BDC operators in Lagos, Abuja, and Kano have contributed to a decrease in the volatility of the naira.
