Naira Appreciates in Official Market as CBN Confirms Highest Dollar Inflow in 19 Months

• The Nigerian currency, the naira, rebounded against the US dollar on Wednesday, February 7, 2024
• The naira appreciated against the dollar at N1,418.78 per dollar as against the N1,421.19 traded the previous day
• The development followed the statement by CBN governor, Olayemi Cardoso, that Nigeria had seen an improved forex inflow

Pascal Oparada has over a decade of experience covering Tech, Energy, Stocks, Investments, and Economy.

The Nigerian currency, the naira, rallied against the US dollar in the official market on Wednesday, February 7, 2024.

The local currency had traded at N1,418.78 per dollar against the N1,421.19 traded on Tuesday, February 6, 2024.

Naira trades at intra-day high of N1,500

According to data from NAFEM, traders at the Forex market quoted an intra-day high of N1,510 per dollar and an intra-day low of N826.28.

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However, the naira hit its lowest in the parallel market, trading at N1,500 per dollar.

The depreciation at the parallel market comes as Forex inflow declined by 56.17% to $203 million.

CBN governor confirms highest dollar inflow in a day

Meanwhile, the Governor of the Central Bank of Nigeria, Olayemi Cardoso, has confirmed that Nigeria witnessed the highest Forex inflow on Monday, February 5, 2024.

Cardoso’s statement confirms a report by Legit.ng that the country experienced the highest dollar inflow in February 2024, amounting to about $800 million.

He said the inflow was the highest the country has experienced in a while.

He stated this recently as he addressed members of the House of Representatives at a sectoral debate on the economy.

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According to the apex bank governor, the bank’s bold reforms span several economic sectors and address challenges sustainably.

He said:

“We are happy to inform you that $844 million was the volume of transactions done as of the close of business yesterday (Monday, February 5, 2024),” the CBN governor said.

He cited recent assessments from international rating organisations and said the country’s rating was upgraded from stable to positive.

CBN governor gives reason for naira depreciation

Legit.ng reported that the governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, said that about $2.4 billion out of the Nigerian government's reported $7 billion outstanding foreign exchange liabilities still needed to be validated.

He said the amount was putting pressure on the naira and causing volatility in the FX market.

In an interview with Arise Television, Cardoso revealed that the bank had settled verified Forex requests amounting to $2.3 billion, adding that current outstanding obligations stood at $2.2 billion.

Source: Legit.ng