Naira Value Rises by 4.5% Amidst FX Backlog Payment

Date:

Share:

Naira Value Rises by 4.5% Amidst FX Backlog Payment

Naira Value Rises by 4.5% Amidst FX Backlog Payment

The Nigeria naira value rose by more than 4.5% on Thursday at the Investors and Exporters foreign exchange (FX) window as demand pressures slowed down after the Central Bank of Nigeria (CBN) announced a plan to clear the backlog.

The naira has been under demand pressures across FX markets as a result of the US dollar shortage in the economy. Recent data from the statistics office showed that export receipts declined 5.20% year on year.

In spite of that, over the last 12 months, Nigeria’s trade position has improved as the value of imported goods declined more than 10% year on year. The apex bank’s acting governor Folashodun Shonubi told a meeting about the CBN plan to offset a $2.5 billion backlog of FX requests owed to local businesses.

As a result of the move, the balance in external reserves dipped successively despite surging global oil prices. Shonubi told a stakeholder meeting that the apex bank is working with commercial banks in the country to clear the unsettled foreign exchange backlog owed to local businesses in the next two weeks.

Data from FMDQ Exchange showed that the naira gained against the US dollar as it exchanged at N736.62 at the Investors and Exporters window. According to market data, the local currency appreciated by 4.53 per cent compared to the N771.59 it exchanged for the dollar on Wednesday.

Traders said the open indicative rate closed at N774.74 to the dollar on Thursday. It was noted that a spot exchange rate of N799.90 to the US dollar was the highest rate recorded within the day’s trading before it settled at N736.62.

FX traders recorded showed that the local currency was sold for as low as 700 to the dollar within the day’s trading. On Thursday, A total of 66.43 million dollars was traded at the investors and exporters window on Thursday.

The latest report published by the National Bureau of Statistics showed that Nigeria reported an uptick in her total trade value by N24.79 trillion under six months in 2023. Naira Gains as CBN Limits Tenure of Banks Chiefs

The report showed that total exports outpaced the total imports during the period to give a positive trade balance of N2.22 trillion on the back of the implementation of less restrictive trade policies. #Naira Value Rises by 4.5% Amidst FX Backlog Payment

Subscribe to our magazine

━ more like this

AFCON 2023 Countdown: Cote d’Ivoire may turn back some Nigerians over travel passports

BY KUNLE SOLAJA. Nigerians holding the ECOWAS Travel Certificates and going for the Africa Cup of Nations next month are certain...

Namibia trainer Benjamin names list of 28 players

Namibia will make its fourth African Cup of Nations appearance Coach Collin Benjamin has called up 28 players The Brave Warriors...

Guinea coach Diawara names 25-man squad for AFCON

Guinea will be making its 13th  African Cup of Nations appearance Coach Kaba Diawara has called up 25 players Syli National...

Mozambique coach Conde announces 23-man squad

Mozambique will make their fifth  African Cup of Nations appearance Coach Chiquinho Condé has called up 23 players The Mambas placed...

Osimhen extends contract with Napoli till 2026

Nigerian international forward Victor Osimhen has signed a contract extension with Napoli until 2026, the Serie A champions announced on Saturday....
spot_img

LEAVE A REPLY

Please enter your comment!
Please enter your name here