Naira Value Rises Against Dollar as CBN Partners Access, Zenith, UBA Other Banks to Clear Debts in 2 Weeks

• The Nigerian currency increased in value against the US dollar at the official and unofficial foreign exchange markets
• This follows the announcement by acting CBN governor Folashodun Shonubi that dollar debts in the country will be cleared
• Since the CBN's decision to float the naira, the value of Nigerian currency has significantly depreciated

The value of the naira recorded a positive performance against the US dollar at the official and unofficial foreign exchange markets on Tuesday, August 5, 2023.

Data from FMDQ securities shows that at the Investors and Exporters window, which is the official market, the naira closed at N744.97/$1 on Tuesday.

This represents a N2.90 or 0.39% appreciation compared to the previous day's N747.87/$1 exchange rate.

Naira exchange rate at unofficial FX market

It was a similar story for the Naira at the black market against the Dollar on Tuesday.

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Traders exchanged the naira at N920/$1 compared with the preceding day’s value of N923/$1.

Also, at the Peer to Peer window, most used by crypto traders, data shows that Nigerian currency improved its value against the dollar by N2 to trade at N924/$1, in contrast to Monday’s rate of N926/$1.

CBN moves to clear dollar debts

The strong performance of the naira across all forex markets follows the Central Bank of Nigeria (CBN) move to clear its dollar debts to banks and companies, Punch reports.

Speaking at a press conference on Monday, Folashodun Shonubi, the acting governor of the CBN, said that a partnership between local banks and the CBN would help clear the current backlog of Forex demand within the stipulated time.

It is estimated that the debt is up to $10 billion.

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He said:

"Banks have been working with the CBN on multiple strategies to address the accumulated backlogs.

"At maturity, they ensure that foreign exchange is accessible to those in need. We are engaged in ongoing discussions with them to formulate a structured plan to resolve these backlogs within the next one or two weeks. This has been an ongoing discussion for some time."

Pastor Adeboye predicts naira's glorious days will return

In another report, the General Overseer of the Redeemed Christian Church of God, Pastor Enoch Adeboye, has predicted that the Naira will bounce back against the dollar.

Adeboye gave this prediction during his church’s monthly Thanksgiving service with the theme; ‘Uncommon Miracles’ on Sunday, September 3, 2023.

He told his congregation not to worry, assuring them that the naira's glorious days would return.

Source: Legit.ng