On Wednesday, 20 March 2024, The rate of naira against the United States dollar fell to #1,400/$ on official and parallel markets, giving the local a significant gain against the greenback at the black market.
Also, the Acting CBN Director of Corporate Communications, Mrs Hakama Sidi Ali, disclosed on Wednesday that the central bank had recently cleared $1.5bn from the backlogs, leading to the fall of the naira rate to the dollar. In this view, the Central Bank of Nigeria announced the final settlements of all valid foreign exchange backlogs to fulfil a vital pledge of the apex bank governor, Mr Olayemi Cardoso, to process an inherited backlog of $7bn in claims.
According to data compiled from the FMDQ Securities Exchange, the gain recorded by the naira at the official market shows an appreciation of N68 or 4.5 per cent, from the N1,560/$1 recorded on Tuesday at NAFEM and an increase of 13.5 per cent or N190 at the parallel market.
The exchange rate has been gaining lately as speculators dump their dollar stocks due to demand from prospective buyers amid CBN clampdowns.
However, the recent clampdowns by the operatives of the Economic and Financial Crimes Commission on the activities of illegal BDC operators in Lagos, Abuja and Kano have helped to reduce the volatility of the naira.
In an interview with a Bureau De Change Operator, Malam Musa Yahyah, he expressed mixed feelings about the new rate, stating that some traders were forced to sell at a loss due to a waning demand for the greenback.
CBN Announces
The acting CBN Director, Sidi Ali, said clearing the FX backlogs significantly increased the external reserves.
She said, “The monthly increase in the reserves resulted from the remittance payments by Nigerians abroad and higher purchases of local assets by foreign investment, including government debt securities”.
Cardoso stated that clearing the FX backlog has helped restore credibility and confidence in the Nigerian economy.
According to the CBN statement, the clearance of the foreign exchange transactions backlog is a strategy outlined during the February 2024 Monetary Policy Committee meeting to stabilize the exchange rate and mitigate imported inflation.
The Central Bank of Nigeria further stated that the clearance will boost confidence in the banking system and stabilize economic growth.
