Naira Bounces Back Against US Dollar As CBN Moves To Clear Forex Backlog

Nigeria’s currency, the Naira gained back some value against the United States (US) dollar at the authorised market on Monday, January 8, 2024, Naija News learnt.

In a publication yesterday, Africa’s First Vertically Integrated Financial Market Infrastructure Group (FMDQ) revealed that the local currency closed at N856.57 per $1 at the official market as against N869.39 recorded in the previous session last Friday.

The Naira started trading on Monday at a rate of N921.36/$ but ended the day at N856.57.

This represents a 1.5% appreciation from the rate it traded at on Friday last week (N869.39/$) and a 5.9% appreciation from the rate it stood at the close of business last year (N907.11/$).

Throughout the trading period, the Naira reached a high of N720.00 and a low of ₦1,185 before settling at N856.57. On the black market, the average rate of the dollar to Naira on Monday was ₦1,236 and ₦1,240 per dollar.

Naija News understands that the naira experienced a gain at the official market on Monday, which was a result of the Central Bank of Nigeria’s (CBN) ongoing efforts to address the backlog of international airlines stuck in the country.

The apex bank announced that it has disbursed approximately $61.64 million to these airlines through various banks, as part of its continuous efforts over the past three months to settle outstanding forward liabilities.

This recent forex settlement brings the total backlog cleared to $2 billion within the three-month period.

The Acting Director of the bank’s Corporate Communications Department, Hakama Sidi Ali, emphasized that this action demonstrates the bank’s commitment to resolving pending obligations and easing the pressure on the country’s foreign exchange and the naira.

Ali expressed optimism that this move by the apex bank would strengthen the naira against other currencies and further enhance investor confidence in the Nigerian economy.

In November of the previous year, the International Air Transport Association (IATA), the leading worldwide trade association for airlines, expressed its disapproval towards Nigeria and other African nations for their refusal to permit international airlines to repatriate their earnings.

According to the association, the amount of funds currently held captive in African countries is estimated to be $1.68 billion, hindering the progress and advancement of air transportation across the continent.

As of August of the same year, reports indicated that the funds of foreign airlines trapped in Nigeria amounted to $793 million.