In a significant turnaround for Nigeria’s economy, the Central Bank of Nigeria (CBN) confirmed the highest dollar inflow the country has seen in 19 months. This revelation follows a statement by CBN Governor Olayemi Cardoso, highlighting Nigeria’s improved Forex inflow.
On Wednesday, February 7, 2024, the Nigerian currency, the naira, showed resilience against the US dollar, trading at N1,418.78 per dollar compared to N1,421.19 the previous day. This rebound signals positive momentum for the nation’s currency.
Traders at the Forex market reported an intra-day high of N1,510 per dollar and an intra-day low of N826.28, indicating fluctuations in currency trading. However, the parallel market witnessed the naira hitting its lowest point, trading at N1,500 per dollar, reflecting a decline attributed to a 56.17% decrease in Forex inflow to $203 million.
Governor Olayemi Cardoso’s confirmation of the highest Forex inflow on Monday, February 5, 2024, further underscores the positive trajectory of Nigeria’s economic landscape. The reported $844 million transaction volume marks a significant milestone, showcasing the country’s potential for economic growth.
Addressing members of the House of Representatives at a sectoral debate on the economy, Governor Cardoso emphasized the CBN’s bold reforms across various sectors to tackle economic challenges sustainably. He highlighted recent assessments from international rating organizations, indicating an upgrade in the country’s rating from stable to positive.
However, Cardoso also shed light on the pressures facing the naira, citing the need to validate $2.4 billion out of the reported $7 billion outstanding foreign exchange liabilities. These outstanding obligations contribute to currency volatility and place additional strain on the FX market. Despite settling verified Forex requests amounting to $2.3 billion, the current outstanding obligations stand at $2.2 billion.
As Nigeria navigates economic complexities, Governor Cardoso’s remarks underscore the importance of concerted efforts to address outstanding liabilities, stabilize the naira, and foster sustainable economic growth.
