Naira Rises by 4.55% after CBN Clears Outstanding FX Backlog

CBN Governor, Olayemi Cardoso

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

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According to the report, the naira continued to strengthen against the dollar, hitting an intraday high of N1,620/$ on Wednesday. This marks a significant improvement from the intraday low of N1,350/$ on the same day. The increased dollar supply at NAFEM, up 37.49% from the previous day, has helped support the currency.

In addition, the CBN’s successful resolution of outstanding foreign exchange claims has given the market further confidence. The CBN declared that a total of $7 billion of inherited claims had been successfully resolved, in line with the CBN Governor’s pledge to clear all valid foreign exchange backlogs. Cardoso has taken a proactive approach to addressing the issue and stabilizing the market.