Nigeria Nigerian Naira's Strengthens to ₦950/$ Amid CBN Actions"

In a remarkable turn of events, the Nigerian naira continued its impressive rebound against the US dollar on Friday, surging to an exchange rate of ₦950/$ in the parallel market. This marks a substantial gain of ₦170 or a 15.18% appreciation of the local currency compared to the ₦1,120/$ it traded for just a day prior. This impressive two-day recovery follows a proactive move by the Central Bank of Nigeria (CBN) to clear a portion of its FX backlog on Thursday.

Bureaux De Change operators have reported that the naira's ascent is still ongoing, with the market responding positively to the CBN's actions. A trader, Awolu, noted, "The dollar is ₦950 today if you want to buy it." Another trader, Kadri, indicated that he is buying at ₦900/$ and selling at ₦950/$, stating that the dollar's value is decreasing. Meanwhile, Taura, another currency trader, reported ₦1,015/$ in his area, with a buy price of ₦980 and a sell price of ₦1,015

However, it's important to note that there are varying reports on the naira's performance in different areas. Muhammad highlighted that the naira had weakened to ₦970/$, with a minimal difference between buying and selling.

Aminu Gwadabe, the President of the Association of Bureaux De Change Operators of Nigeria, confirmed that the CBN's efforts to clear its backlog have significantly contributed to the naira's strength. Gwadabe emphasized that market signals were positive, and the CBN should continue its efforts

This recovery comes following reports that three major banks, including Citi Bank, Stanbic IBTC, and Standard Chartered Bank, received full payment of debts owed to them by the CBN, a move that has helped stabilize the foreign exchange market. The naira's ongoing recovery is being closely monitored as it signifies a potential positive shift in the country's economic landscape.