Naira Appreciates Against British Pound Across Markets, Gains Over N200

• The naira to British pound has gained significantly in one week, recording over N200/£, according to CBN data
• From N2003.85/£, the local currency appreciated in a week to close at N1,772.78/£ on Friday, March 22
• This occurred during the same period the naira appreciated after the CBN claimed it had settled all valid FX payment backlog

Legit.ng journalist Zainab Iwayemi has over three years of experience covering the Economy, Technology, and Capital Market.

The Nigerian currency has gained massively against the pound sterling, recording over N200/£ gain in just one week.

Data collated from the Central Bank of Nigeria showed that the naira closed at N1,772.78/£ on Friday, March 22, compared to the N2,003.85/£ it ended the previous week, Friday, March 15. This represents a significant appreciation of N231.07/£ in just one week.

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More breakdown of the exchange rate

Further analysis by Legit.ng showed that the naira closed at N1,880.54/£ on Monday, March 18. On Tuesday, this was reversed as the naira lost N105 to record N1995.38/£.

On Wednesday, however, the local currency rebounded to appreciate by N192.49/£ and close at N1,792.89/£.

The naira against the British pound fell to N1,840.95 on Thursday but recovered on Friday to N1,772.78/£.

In the unofficial market, a similar trend was followed as the local currency closed at N1745/£ as of Friday.

The appreciation came at a time when the CBN revealed that it had fulfilled the promise to pay all valid foreign exchange forwards liability.

In a statement, the acting director of corporate communications, Sidi Ali, noted that the Oluyemi Cardoso-led CBN inherited a backlog of $7 billion in claims.

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The statement noted that all claims have finally been cleared, easing pressure on the foreign exchange market.

Following this, the Nigerian currency gained in the parallel market on Friday, March 22, 2024.

Similarly, at the Nigerian Foreign Exchange Market (NAFEM), FMDQ data showed that the naira dipped by 3.58% to trade at N1,431 on Friday, March 22, 2024, from the N1,382 per dollar it traded on March 21, 2024.

Nigerian banks release new requirements for customers

Legit.ng reported that Nigerian banks have sent messages on new requirements to customers seeking foreign exchange.

According to the banks, starting from April 1, 2024, customers must now provide evidence of a three-year Tax Clearance Certificate (TCC) to buy dollars.

A TCC serves as evidence of compliance with tax obligations, ensuring adherence to the stipulations outlined in Section 85 (2) of the Personal Income Tax.

Source: Legit.ng