Naira Appreciates to N1,382/$ After $7bn FX Settlement

• Naira records a significant recovery against the dollar at NAFEM, appreciating from N1,536.83 to N1,382.35 per dollar
• Central Bank of Nigeria announces successful clearance of $7 billion in foreign exchange claims, bolstering forex reserves

The local currency experienced a significant recovery on Thursday, with the naira appreciating notably against the dollar, owing to recent interventions by the Central Bank of Nigeria (CBN).

At the Nigerian Autonomous Foreign Exchange Market (NAFEM), the naira’s value surged from N1,536.83 to N1,382.35 per dollar. This marks a substantial gain for the local currency, a development not seen in time.

This uptrend followed the Central Bank of Nigeria (CBN) announcement that it had successfully cleared $7 billion in valid foreign exchange claims while bolstering the country’s forex reserves.

Hakama Sidi-Ali, the Acting Director of Corporate Communications at the CBN, disclosed this information in a statement released on Wednesday. According to the statement, clearing the foreign exchange backlog is a significant milestone, aligning with the CBN Governor, Mr. Olayemi Cardoso’s, commitment to addressing the backlog of $7 billion in claims inherited by the bank.

This action is part of the broader strategy outlined during last month’s Monetary Policy Committee meeting to stabilize the exchange rate, mitigate imported inflation, foster confidence in the banking system, and stimulate economic growth.