The Nigerian naira appreciated against the US dollar on Monday, 4th December 2023, closing at N837.77/$1 at the official market.
This positive development aligns with expectations among experts, who anticipated that the Central Bank of Nigeria’s (CBN) recent initiative to clear a portion of its FX backlog would boost confidence in the currency.
Data from the NAFEM where forex is officially traded, showed that the domestic currency appreciated 10.67% to close at N837.77 to a dollar at the close of business on Monday.
This represents an N89.42 gain or a 10.67% increase in the local currency compared to the N927.19 it closed on Friday.
The intraday high recorded was N1021/$1, while the intraday low was N701/$1, representing a wide spread of N320/$1. According to data obtained from the official NAFEM window, forex turnover at the close of the trading was $73.94 million, representing a 32.87% growth compared to the previous day.
However, the naira closed flat at the parallel forex market where forex is sold unofficially, the exchange rate quoted at N1165/$1 same as what was closed on Friday, while peer-to-peer traders quoted around N1161.55/$1.
The Central Bank of Nigeria (CBN) has said it has made tranche payments to 31 banks to clear the backlog of foreign exchange forward obligations.
Governor of the Central Bank of Nigeria (CBN), Dr Olayemi Cardoso, speaking at the Chartered Institute of Bankers of Nigeria (CIBN) 50th-anniversary barely two weeks ago, said that the persistent fluctuating exchange rate was hampering business growth and promised to be transparent and fair to all as the bank performs its function.
“I’m confident and optimistic that by taking appropriate corrective actions and strategic steps, we can restore macroeconomic stability and address fundamental flaws,” he stated.
| Nairametrics/Daily Post