The Nigerian naira has exhibited a positive trend, strengthening to N1,120 against the US dollar in response to news that the Central Bank of Nigeria (CBN) initiated the clearance of some of its foreign exchange (FX) backlog.

This marks a 4.27% appreciation from the previous day when it traded at N1,170 per dollar.

Currency traders, commonly known as Bureaux De Change operators, reported a rapid recovery of the naira, moving from N1,170 per dollar earlier in the day to close trading at N1,120 per dollar.

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This development signifies a notable improvement in the foreign exchange market.

Awolu, one of the traders, revealed, “The dollar today is N1,040 if I want to sell. I buy at N1,030. The rate has dropped. This morning it was N1,170. It is still falling; it doesn’t have a bus stop yet.”

Kadri, another trader, stated, “Dollar is N1,120. In the morning, it was N1,150.”

Abubakar confirmed the positive trend, saying, “Dollar has been coming down today. It is N1,120 now. It was N1,150 before. It is still dropping.”

Muhammad added, “Dollar is N1,125 for sale. In the morning, it was N1,150.”

Aminu Gwadabe, the President of the Association of Bureaux De Change Operators of Nigeria, verified that the naira closed at N1,120 per dollar on Thursday.

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He attributed this improvement to the CBN’s efforts to clear its backlog, signaling a positive outlook in the market.

In parallel, the naira experienced a 0.76% appreciation at the official market, closing at N793.28 against the dollar on Thursday, as reported by the FMDQ OTC Securities Exchange.

The day’s trading witnessed the highest price at N1,018.60 per dollar and the lowest price at N730.00 per dollar.

The CBN has made progress in settling some of its FX obligations with specific banks, including Citibank, Stanbic IBTC, and Standard Chartered, contributing to the positive change.

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The Federal Government recently announced its expectations of receiving $10 billion to address forex backlogs and stabilize the naira, as part of ongoing efforts to enhance Nigeria’s economic stability and currency value.