By Olawale Lamina
As the naira maintained a steady appreciation against the United States dollar on Thursday, gaining N18 to close 1,382/$ at the official market, Presidency has warned currency speculators to shun acts that may be inimical against the nation’s currency.
The naira had recorded major gains at both the official and parallel foreign exchange markets as transactions closed at the black market at N1,400/dollar on Wednesday.
According to the data from the FMDQ Securities Exchange Limited, naira appreciated by 1.3 percent following increased dollar supply at the Nigerian Autonomous Foreign Exchange Market.
On Thursday, the intraday high closed at N1,598 per dollar, heathier than N1,620 it closed at on Wednesday.
Similarly, the intraday low strengthened to N1,300/$ on the same day, stronger than N1,350/$1 it closed at on the previous day.The dollar supplied by FX market players increased to $288.47, an increase of $2 or 7.46 percent from $268.29 million recorded on Wednesday from $195.13 million at NAFEM.
Also, in the recent weeks, the naira has gained N500 against the US dollar from it record low this year at the unofficial market, as the CBN builds confidence in FX market.
The apex bank, through Hakama Sidi Ali, CBN’s acting director of corporate communications, conveyed this information in a statement sent via mail. disclosed on Wednesday that it has settled all valid foreign exchange backlogs, as pledged by Governor Olayemi Cardoso, addressing inherited claims amounting to $7bn. Although , foreign airlines are still not satisfied as it claimed that debt owed it was yet to be resolved.
In the statement, Cardoso highlighted the priority of clearing the FX backlog to enhance credibility and confidence in the Nigerian economy.
According to data from the CBN, foreign currency reserves rose by 3.62 percent to $34.37 billion as of March 12, 2024, compared to $33.17 billion recorded at the beginning of February 2024.
In similar vein, the apex bank reported a significant surge in Diaspora remittances, which skyrocketed by 433 percent to $1.3 billion in February, when compared to $300 million in January
However, the Special Adviser on Information and Strategy, Bayo Onanuga, has cautioned currency traders speculating on foreign exchange to sell their dollar holdings, as the naira is expected to increase in value soon.
Onanuga said, “With backlog FX settled, Naira is set to appreciate further, faster. Currency speculators should quickly dump their stock of dollars to avoid sorrows and tears.”
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