Nigeria Naira Strengthens Significantly, Hits N1,382/$ Amid Forex Stability Efforts

The Central Bank of Nigeria's recent interventions have spurred a remarkable recovery for the Naira, with the currency appreciating to N1,382.35/$ at the Nigerian Autonomous Foreign Exchange Market (NAFEM).

This surge marks a significant gain from its previous rate of N1,536.83/$, showcasing the effectiveness of the CBN's initiatives in stabilizing the currency.

The boost comes following the clearance of $7 billion in valid foreign exchange claims, as announced by the CBN.

Acting Director of Corporate Communications, Hakama Sidi-Ali, highlighted the central bank's commitment to addressing backlogs and stabilizing the exchange rate to curb imported inflation and instill confidence in the economy.

The Naira's rebound extends to the parallel market, where it traded at N1,500/$, signaling a trend towards appreciation. Bureau de Change operators across Lagos, Abuja, and Kano reported a gradual decline in the dollar's value against the Naira throughout the week, with prospects of further appreciation.

However, controversy looms over foreign airlines' trapped funds, with claims that despite the CBN's assertions of clearing all verified backlogs, the issue remains unresolved.

Amidst this, travel agencies affirm that the Federal Government is not indebted to foreign airlines, urging them to resolve outstanding issues with commercial banks.

Experts commend the CBN's interventions, foreseeing a gradual restoration of confidence and stability in the forex market. While challenges persist, stakeholders advocate for continued efforts to bolster forex supply and address underlying economic fundamentals for sustained progress.