President Bola Tinubu’s Special Adviser on Information and Strategy, Bayo Onanuga, made this call in a statement via his X handle on Thursday.

The presidential aide urged speculators to quickly dump their dollars to avoid “tears.”

He stated, “With backlog FX settled, Naira is set to appreciate further, faster. Currency speculators should quickly dump their stock of dollars to avoid sorrows and tears.”

Onanuga was reacting to the Central Bank of Nigeria, CBN, disclosure that it had cleared the $7 billion foreign exchange backlog inherited by Governor Yemi Cardoso.

In a statement on Wednesday, CBN’s Acting Director of Corporate Communications, Mrs Hakama Sidi Ali, confirmed the settlement of all valid FX backlog claims.

Ali said the apex bank employed Deloitte Consulting, an independent auditing firm, to meticulously assess the transactions, ensuring that only legitimate claims were honoured.

“Any invalid transactions were referred to the relevant authorities for further investigation,” she stated.

The CBN’s commitment to tackling the FX backlog appears to be paying off, with the external reserves seeing a significant rise, reaching $34.11 billion as of March 7, 2024, the highest level in eight months.

Dr Usman Opanachi, Department of Monetary Policy, CBN who spoke on behalf of the Governor of the CBN, Dr Olayemi Cardoso, at the 2024 public lecture titled “Recent Developments in the Nigerian Foreign Exchange Market: Issues, Options and Way Forward,” organized by the Nigerian Economic Society, emphasized the challenges faced in stabilizing the exchange rate and combating inflation.

He highlighted the CBN’s commitment to addressing these issues, acknowledging the historical struggle with excess demand for forex.

He emphasized the CBN’s adoption of a market forces approach, allowing market dynamics to play a significant role in determining the Naira’s value.

However, renowned economist Prof. Sam Olofin cautioned that controlling the foreign exchange might be challenging given the dominance of parallel market forces.

President of the Nigerian Economic Society, Prof. Adeola Adenikinju, underscored the importance of consulting economists to address economic weaknesses.

He highlighted the exchange rate’s pervasive impact on the economy, emphasizing the need for informed policy decisions.

The event, chaired by Prof. Antonia Simbine, Director General of the Nigerian Institute of Social and Economic Research, stressed the imperative for solutions to Nigeria’s economic challenges.

The Vice Chancellor of the University of Ibadan, Prof. Kayode Adebowale, represented by Prof. Olamakinde Olapegba, echoed the call for concerted efforts towards resolving these issues.

A Bureau de Change operator at Wuse Zone 4, Malam Ibrahim, confirmed the rates on Monday.

He said, Yes it is true, we are currently selling above N2,000 for the pounds and it is still about the heavy and consistent demand for these currencies.”

the new rate increased from N1,930 recorded on Saturday and is currently the lowest point in the historical performance of the naira.

Similarly, the naira depreciated against the dollar in the parallel forex market, where forex is unofficially trading at N1,673 from N1,670/$ on Friday.

These developments persist despite the Central Bank of Nigeria’s implementation of several policies aimed at bolstering the supply of foreign exchange.

One of the recent policies was the CBN’s announcement of halting international oil companies operating in Nigeria from immediately remitting 100 per cent of their forex proceeds to their parent companies abroad.

Market analysts attribute the recent decline to a consistent surge in demand for dollars that has been evident since the commencement of January. The primary contributors to this heightened demand include a substantial portion of the demand attributed to businesses actively seeking to restock goods or acquire raw materials, necessitating a higher demand for foreign exchange.

This indicates a loss of 3.93 per cent fall or N58 from the N1,476.13/$ the national currency closed last week Friday, according to FMDQ Exchange, a platform that publishes official foreign exchange trading in the country.

Monday’s official rate became the worst official exchange rate since the Central Bank of Nigeria floated the national currency in June 2023.

However, at the parallel market on Monday, the naira traded between the rate of N1,480 and N1,490. It appears the local currency has been trading higher at the parallel market in recent times especially since the FMDQ reviewed the methodology it uses to calculate the official exchange rate.

The change in the methodology for the calculation of the official exchange rate had led to the depreciation of the naira from over 900/dollar to over 1,400/dollar.

Sometime in December, the naira closed above the N1000/$ on the official window. On December 8, the naira first fell to an all-time low of N1,099.05/$. On December 28, 2023, it closed at N1043.09/$, and N1035.12/$ on January 3, 2024. On January 9, 2024, it closed at N1089.51/$ and N1082.32/$ on January 10, 2024. It had also fallen  to an all-time-low of N1348.63/$ on January 30, 2024, when the FMDQ reviewed its methodology for the calculation of the official exchange rate.

Meanwhile, dollar sales by banks dropped by 56.58 per cent to $253.77 million on Friday from the peak of $584.53 million on Monday, the first trading day after the CBN ordered banks to sell excess dollars in the official FX market.

Cumulatively, commercial banks sold a total of $1.97bn in one week.

Currency traders in Abuja, also known as Bureau De Change operators, quoted the buying rate of the greenback at N1,480 and the selling price at N1,503, leaving a profit margin of N23.

Mallam Yahu, a BDC operator in Wuse, said, “We currently buy between the rate of  N1,480 and N1,490, and we sell at N1,500 and N1,503.”

Another seller, simply identified as Yahaya Abdul, however said he could not buy beyond the rate of N1,460.

The local unit had closed at 1,348 against the greenback on Monday after the FMDQ Security Exchange review the methodology used for the calculation of its rates.

This came as the Central Bank of Nigeria released a circular to authorised dealers on financial market price transparency, warning them against engaging in sharp practices.

The bank stated that its attention had been drawn to the practice of some dealers and their customers in reporting inaccurate and misleading information on transitions in the financial market.

It stated that the behaviour was not compliant with ethical standards… “and deliberate attempts to create price distortions by reporting false transaction details amounts to market manipulation which will not be tolerated and henceforth face sanctions.”

Meanwhile, members of the organised private sector and economists expressed concerns over the development, saying the fall of the local unit at the NAFEX window would likely lead to business shutdowns, job losses, hikes in the prices of commodities and services, and high inflation.

the naira plummeted further on Tuesday, falling to N1482.57/$ as of the end of trading. On Monday, FMDQ Securities Exchange, which calculates the exchange rate of the country, revised the methodology used to set the exchange rate. This some experts believe is a technical devaluation of the national currency.

In a market notice, FMDQ stated, “This revision aims to address recent fluctuations and challenges encountered in the Nigerian Foreign Exchange (‘FX’) Market.”

It noted that the new measures taken would ensure that NAFEX and NAFEM rates accurately reflect market conditions.

It explained, “These revisions are focused on enhancing the accuracy and reliability of the NAFEX and NAFEM rates determination process, with a focus on data availability and integrity involving a rigorous data validation process, including tolerance checks which shall be applied by FMDQ Exchange, subject to internal policies and procedures.”

These moves by FMDQ and CBN were aimed at closing the gap between the official and parallel rates of the foreign exchange market. The NAFEM rate closed at N1348.63/$ on Monday, a lot closer to the parallel rate which closed at N1,450/$.

On Tuesday, the naira closed at N1482.57/$, a 9.93 per cent decline from its Monday rate. On the parallel market, it remained stable at N1,450/$ on Tuesday. On the cryptocurrency peer-to-peer market, the naira was trading for N1,439.5/$ on Binance’s P2P platform as of the time of filing this report.

The naira’s new fall on the official window is set to bear fresh consequences for the average Nigerian, experts have said. The naira continues to tumble despite the best efforts of the apex bank and Federal Government.

Recently, the CBN governor, Olayemi Cardoso stated that the national currency was currently undervalued, and that the bank was working to stabilise the exchange rate.

He said, “In our efforts to stabilise the exchange rate, we must prioritise transparency and create a market environment that creates a fair determination of exchange rates ensuring stability for businesses and individuals alike.”

Finance Minister Wale Edun expressed optimism, stating, “We’re hoping to get $1bn or $1.5bn from the World Bank” for budgetary support, emphasizing the country’s commitment to economic reforms.

Edun also revealed that Nigeria is considering issuing a Eurobond in late 2024 as part of its financial strategy amid challenging economic conditions.

Eurobonds, denominated in foreign currencies, offer Nigeria a vital mechanism to navigate its financial landscape.

The Finance Minister emphasized ongoing reforms and stated, “It is a matter of discussion at the moment, but we think we will get the support because we are continuing with our reforms.”

Nigeria has a history of utilizing Eurobonds to raise debt for infrastructure funding and economic development. The country previously entered international debt markets with a $1.25 billion Eurobond issuance in 2022.

In addition to the World Bank aid, Nigeria is grappling with a substantial budget deficit for the fiscal year 2024, standing at N9.18 trillion.

President Bola Tinubu outlined a multifaceted financing approach, including new borrowings, proceeds from privatization, and drawdowns on multilateral and bilateral loans for specific development projects.

The naira’s persistent decline, fueled by dollar shortages and speculative activities, has widened the gap between official and parallel market exchange rates.

In response to mounting economic challenges, the Central Bank of Nigeria recently disbursed $2 billion to settle outstanding foreign exchange forwards, aiming to boost liquidity and stability in the foreign exchange market.

As Nigeria faces a record low for the naira and significant economic hurdles, the Finance Minister assured that the $1.5 billion World Bank loan would be used to finance development, with the facility expected to be disbursed soon.

The currency fell by 27.19 per cent from the N856.57/$ it closed on Monday, according to data from the FMDQ Securities Exchange.

On Tuesday, the naira opened trading at N922.22/$, rose to a high of N1251/$ and low of N720/$ before closing at N1089.51/$.

Total forex turnover on the day was $97.45m.

This is the fourth time the naira will close below N1,000 on the official window.

On December 8, 2023, the naira fell to an all-time low of N1,099.05/$, on December 28, 2023, it closed trading at N1043.09/$, on January 3, 2024, the national currency closed at N1035.12/$.

Tuesday’s N1089.51/$ is the second lowest the naira has closed on the official FX window since the Central Bank of Nigeria removed the rate cap of the currency.

The naira’s continued decline is despite the apex bank’s effort to clear backlogs of matured foreign exchange obligations to the Deposit Money Banks. Recently, the CBN stated that it has paid $2bn as part of its backlog obligations.

Reports estimate that the bank is owing $7bn as forward contract obligations. The CBN disclosed this when it revealed it has disbursed $61.64m to foreign airlines as part of matured foreign exchange owed to them.

The CBN Acting Director of Corporate Communications, Hakama  Alia, said, “These payments signify the CBN’s ongoing efforts to settle all remaining valid forward transactions, to alleviate the current pressure on the country’s exchange rate.

“It is anticipated that this initiative by the CBN should provide a considerable boost to the Naira hug against other major world currencies and further increase investor confidence in the Nigeria economy.”

Also, this current depreciation of the naira against the dollar is in the face of the government’s renewed effort to boost liquidity in the foreign exchange market.

At the end of 2023, the Minister of Finance and Coordinating Minister of Economy, Wale Edun disclosed that the Federal Government had received a $2.25bn foreign exchange support facility from the African Import-Export Bank.

According to the minister, the first tranche of its $3.3bn facility from the bank is aimed at resolving FX shortages in the economy.

Commenting on the issue, the Chief Executive Officer, Economic Associates, Dr Ayo Teriba, noted that the volatility of the naira is because of inadequate foreign exchange supply.

He said, “Reserves are low and declining, the CBN is known to be in arrears on some of its obligations. It has started clearing its arrears and has pledged to clear all of it in due course.”

He stated that the government has been making efforts to boost FX supply through investments, but these are yet to materialise, yet.

He declared, “I am optimistic that if the government can walk their thought about opening to investors, we would get the forex to boost reserves and meet the demand in the FX market, and the naira would stabilise. I want to see the N1000/$ as a reflection of FX shortages. I want to hope that Nigeria will in the next few weeks take the right steps.

“We were to take the NNPC to the market last year, but it didn’t happen. These are things we can fast-track. Nigeria has options.”

Teriba highlighted that the recent inflow of $2.3bn as crude forwards won’t solve the country’s supply issues.

He added, “We need to put down enough access to attract foreign exchange inflows. The naira will stabilise, inflation will come down, growth will pick up, and the living standard will improve. If we do not act, the volatility will continue, and this will be a bottomless pit. We need to build a wall of reserves so that the FX market will improve.”

This represents a N80 loss or a 8.42 per cent decline of the local currency compared to the N950 it closed the week at last Friday.

This is also the first time the naira is falling since the Central Bank of Nigeria began to clear some of its FX backlog last week.

Currency traders, also known as Bureaux De Change operators, said that the naira was trading at between N990 to N1,030/$.

A trader who gave his name as Awolu said, “The dollar is N995 if you want to sell. If you want to buy from me, it is N1,020.” Another trader, Kadri, added, “The dollar is N960 if you want to sell. If you want to buy, it is N990.”

According to the President of the Association of Bureaux De Change Operators of Nigeria, Aminu Gwadabe, the dollar has gained against the naira because people who had bought it at a higher price are resisting its fall following the Central Bank of Nigeria’s move last week.

This was disclosed in a statement by the CBN’s Director of Corporate Communications, Isa AbdulMumin, amid claims suggesting the apex bank plans to redenominate the country’s legal tender.

“We are concerned that this narrative, which we had refuted before now, appears to be gaining traction with several debates on the implication of such a policy for the Nigerian economy,” the statement read.

“We wish to reiterate that the contents of the message are misleading. The authors of the message, in their mischief, modified text eked from an old policy move by a previous CBN Governor in 2007 to make it appear recent.

“For the avoidance of doubt, there is currently no plan by the Bank to restructure and redenominate the naira. The public is hereby advised to ignore the news report, as it is speculative and calculated to cause panic in the polity.”

Owners of small-scale enterprises, Nigeria Employers’ Consultative Association, and manufacturers, expressed concern about the falling value of the naira, warning that it would lead to the shutting down of factories and attendant job losses.

The naira has maintained a downward trend since the Central Bank of Nigeria allowed a free float of the national currency against the dollar and other global currencies in June.

This decline has further led to manufacturers struggling to get raw materials, with more companies planning to sack more workers or shut down.

With the declining naira value, manufacturers are faced with cutting production, jobs, and raw material imports.

A Bureau de Change operators  said the naira exchanged for the dollar at the parallel market between 1,005/$ and 1,025/$ on Tuesday.

A BDC operator in Lagos, Yusuf Kareem, who spoke to one of our correspondents, stated, “We bought for N1,005/$ and sold for 1,025/$ on Tuesday. The money is still scarce. The value of the naira has been falling.”

Another BDC operator in Lagos, Musa Yunus, said, “The naira was traded at 980/$ two weeks ago, but today, it is 1,020/$. We don’t know what will happen tomorrow because it has not been coming down.”

Another BDC operator in Lagos, who simply identified himself as Idris, said, “I am not sure you can buy up to $1,000 from me now because it is not available. We buy at the rate of 1,000/$, but I sell at 1,015/$.”

Babangida, another BDC in Lagos, said, “I sell for N1,010 per $ and buy at the rate of N1,000.”

But the Assistant Provost, Association of Bureau De Change Operators, Zone 4, Wuse, Abuja, Muhammed Nera, said the rate closed at 1,015/$ on Tuesday.

He stated, “As of the close of business, we were buying at N1,010/$ and selling at N1,015/$. But I can’t say what the rates would be tomorrow (today).”

On the Investors & Exporters forex window, official figures from the FMDQ showed that the naira fell slightly and closed at 765.83/$ on Tuesday from 765.02/$ on Monday. The official market recorded a total turnover of $60.30m