Naira Resurges Against US Dollar In Reversal

The Naira commenced trading on Monday at N921.36/$ but concluded the day at N856.57, indicating a 1.5% appreciation from the rate recorded on Friday (N869.39/$) and a 5.9% improvement from the closing rate at the end of last year (N907.11/$).

During the trading period, the Naira reached a high of N720.00 and a low of N1,185 before settling at N856.57. On the black market, the average dollar to Naira rate on Monday was N1,236 and N1,240 per dollar.

The Naira’s gain at the official market on Monday is attributed to the Central Bank of Nigeria’s (CBN) ongoing efforts to address the backlog of international airlines stranded in the country.

The CBN announced the disbursement of approximately $61.64 million to these airlines through various banks, 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.

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

Ali expressed optimism that the CBN’s move 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) expressed dissatisfaction with Nigeria and other African nations for not allowing international airlines to repatriate their earnings.

The association estimated that the funds currently held in African countries amounted to $1.68 billion, hindering the progress of air transportation across the continent. As of August of the same year, the funds of foreign airlines trapped in Nigeria were reported to be $793 million.