The Naira just did a happy dance, going from a scary 1,200 to a Dollar to a much comfortable N900. The Central Bank of Nigeria (CBN) deserves a round of applause for making this happen by clearing the FX backlog, this is the foreign exchange that banks or companies were supposed to get but didn't. This made everyone run around looking to sell off their USD in the black market, making the Naira's value jump up.
The CBN made a smart move by attending to this backlog thing. Banks and companies have started receiving the $6.7 billion worth of forex they have been missing for so long and it is giving serious life to the Naira.
But what's up next? Well, once this backlog buzz wears off, the Naira's future depends on keeping a good supply of forex and having smart economic plans. It's a good moment, but to make it last, we need to keep our eyes on the ball.
In a nutshell, the Naira's recent happy dance is because we sorted out the FX backlog worth a whooping $6.7billion! Things might get tricky in the future, but right now, the Naira is enjoying a well-deserved break. Cheers to that!