Naira appreciates further as CBN clears backlog of FX

* Currency speculators advised to dump their Dollar holdings

By Jon Egie

The Nigeria currency, Naira, is set to appreciate further as all valid foreign exchange backlogs have been successfully resolved by the Central Bank of Nigeria, CBN.

This was disclosed by CBN’s Acting Director of Corporate Communications, Hakama Sidi Ali in a statement sent to PUNCH.

She stated that the CBN finalised the payment of $1.5billion to settle obligations to bank customers and thereby clearing remaining balance of the FX backlog.

She emphasised the priority of clearing the FX backlog to enhance credibility and confidence in Nigerian economy.

CBN data show that Nigeria’s foreign currency reserves rose from $33.17bn in February to $34.37bn in March 2024, marking a 3.62 per cent increase.

The CBN also reported significant surge in Diaspora remittances that skyrocketed by 433 per cent to $1.3bn in February compared to$300m in January.

Following the expected imminent increase in value of the Nigerian currency (Naira), Special Adviser on Information and Strategy, Bayo Onanuga has cautioned currency traders speculating on foreign exchange to sell their Dollar holdings. He advised the speculators to sell off their Dollars to avoid potential swift losses.

” With backlog FX settled, Naira is set to appreciate further and faster. Currency speculators should quickly dump their stock of Dollars to avoid sorrows and tears” He said.