Naira resumes gain on Cardoso’s plan towards  trillion GDP target

Naira resumes gain on Cardoso’s plan towards $1 trillion GDP target


On Friday, November 24, 2023, the naira recovered against the US dollar at the official window.

Data on the Nigerian Autonomous Foreign Exchange Market (NAFEM) showed the naira closed at N794.89/$1, rebounding after a two-day fall.

The amount indicates 16.88% from the N956.33/$ it recorded on Thursday. Consequently, the high and low records for the day were N1,136/$ and N700/$, respectively.

The turnover, which represents the amount of dollars traded, hit $105.50 million for the day.

Similarly, the unofficial market saw the naira appreciate to the dollar from N1,160/$ to N1,155/$, showing a 0.43% gain.

Meanwhile, there are indications that currency appreciation may be linked with Olayemi Cardozo’s plan to unveil the bank’s monetary policy thrust and economic outlook for 2024.

He also told Nigerian banks to prepare for a new round of banking sector recapitalization as the nation works towards the $1 trillion Gross Domestic Product (GDP) target.

The last banking recapitalization in 2004 saw banks increase their capital base from N2 billion to N25 billion.

The CBN governor at the 58th Annual Bankers Dinner by the Chartered Institute of Bankers of Nigeria (CIBN) in Lagos disclosed that the apex bank has paid forex backlogs to about 31 banks.

Samuel Oyekanmi, a macroeconomic analyst, said tranche payments to 31 banks to clear the Forex backlogs plaguing the FX market are necessary.


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