The Nigerian Naira has experienced a significant 26.36% depreciation against the US Dollar in the official Investor and Exporter window of the foreign exchange market.
This decline follows the Central Bank of Nigeria’s announcement that it successfully cleared $2bn from its backlog obligations. The apex bank revealed the payment of $2bn, addressing outstanding forward contract obligations, and disbursed $61.64m to foreign airlines as part of matured foreign exchange obligations.
Hakama Sidi Alia, the CBN Acting Director of Corporate Communications, emphasized these payments as part of ongoing efforts to settle remaining valid forward transactions, aiming to alleviate pressure on the country’s exchange rate.
Despite these measures, the Financial Derivatives Company predicts continued pressure on the naira throughout 2024, citing the central bank’s limited capacity to defend the currency.
Source: PUNCH