Naira’s recovery continues amid FX backlog clearance as CBN debunks report of scarcity

The recent recovery recorded by the naira against the dollar continued on Thursday as the Nigerian currency appears to be buoyed by reports that the Central Bank of Nigeria (CBN) has commenced the clearance of Foreign Exchange backlogs.

The naira traded at N1,120/$1 representing an appreciation of N50 or 4.27 per cent compared to the N1,170 it traded on Wednesday.

Meanwhile, the naira appreciated by 0.76 per cent at the official market to close at N793.28 to the dollar on Thursday from N799.32/$ on Wednesday according to details on FMDQ OTC Securities Exchange.

Data from the platform which oversees official foreign exchange trading in Nigeria revealed that the highest price recorded within the day’s trading was N1,018.60/$1, and the lowest price was N730.00/$1 before closing at N793/$1.

Although the intraday high touched N1,018.6/$1, the closing rate was significantly lower at N793.28/$1, indicating a substantial premium disparity of approximately N220/$1.

On Thursday, news broke that the apex bank had begun to clear some of its foreign exchange backlogs. Sources close to the matter confirmed that the apex bank had settled some of its FX obligations with certain banks such as Citibank, Stanbic IBTC, Standard Chartered, among others.

READ ALSO:Naira gains at official market as JP Morgan sees N850/$ exchange rate by December

This move seemed to have added some impetus to the naira.

Meanwhile, the apex bank has debunked reports making the rounds about the scarcity of the naira at banks, Automated Teller Machines and elsewhere.

The apex bank through its Director of Corporate Communications, Isa AbdulMumin assured that the bank has sufficient stock of naira notes.

“The attention of the Central Bank of Nigeria (CBN) has been drawn to reports of alleged scarcity of cash at banks, automated teller machines (ATMs), Points of Sale and among Bureaux de Change (BDCs) in some major cities across the country.

“Our findings reveal that the seeming cash scarcity in some locations was due largely to high volume withdrawals from the CBN branches by Deposit Money Banks (DMBs) and panic withdrawals by customers from the ATMs”, he had stated.

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