The Governor of the Central Bank of Nigeria (CBN), Yemi Cardoso, has successfully obliterated a longstanding $7 billion foreign exchange (FX) backlog.
This momentous milestone not only underscores Governor Cardoso’s commitment to fiscal prudence but also injects a renewed sense of economic confidence into Nigeria’s financial landscape.
The announcement of this feat was made on Wednesday by Mrs. Hakama Sidi Ali, the CBN’s Acting Director of Corporate Communications, who heralded the complete resolution of all legitimate FX backlog claims.
This development resonates deeply with Governor Cardoso’s initial pledge to address the backlog decisively, signaling a significant stride towards bolstering Nigeria’s economic resilience.
Moreover, Nigeria’s external reserves have surged to an impressive $34.11 billion as of March 7, 2024, marking an eight-month high. This surge in reserves has had a palpable ripple effect on the parallel market, where the Nigerian naira has witnessed a remarkable appreciation, now trading at N1400/$1 for those selling dollars.
Financial analysts attribute this strengthening exchange rate to a combination of factors, including a reduction in demand for foreign currency and a decline in speculative activities. Insights from the parallel market reveal a discernible uptick in the value of the naira, with rates climbing from N1600/$1 to a selling range between N1500/$1 and N1550/$1, while the purchase rate stands firm at N1400/$1.
This favorable exchange rate has been warmly welcomed by traders in the parallel market, who express satisfaction with the naira’s appreciation, citing its positive impact on their business operations.
Furthermore, the official market exchange rate experienced a notable dip to N1,560/$1 on Tuesday, marking the naira’s strongest position since March 4, when it stood at N1534/$1. The comprehensive financial strategy implemented by the CBN under the guidance of President Tinubu underscores a significant improvement in Nigeria’s economic framework and underscores the central bank’s unwavering commitment to currency stabilization efforts.
Governor Yemi Cardoso’s leadership at the helm of the CBN continues to chart a course towards economic prosperity, with the eradication of the $7 billion FX backlog and the unprecedented elevation of the naira to new strengths standing as testament to his vision and strategic acumen.