Abuja, Nigeria — The naira recorded its second consecutive marginal gain against the dollar on Friday, reflecting easing pressure in Nigeria’s foreign exchange (FX) market.
Data from the Central Bank of Nigeria (CBN) showed that the dollar traded at N1,537 in the official FX market, slightly lower than N1,538 recorded on Thursday, the first trading day of 2025.
Key Developments in the FX Market
In the Nigerian Foreign Exchange Market (NFEM), the highest bid for the dollar remained steady at N1,545 on Friday, while the lowest bid rate improved to N1,533 from N1,532 quoted on Thursday.
At the FMDQ Securities Exchange Limited, the market opened at N1,538/$1 and closed marginally stronger at N1,534.05/$1. The dollar traded within a range of N1,530.50 and N1,539 during the session in the Nigerian Autonomous Foreign Exchange Market (NAFEM).
Meanwhile, in the parallel market, also known as the black market, the naira held steady at N1,665/$1
Reform Efforts to Boost Transparency
The Central Bank’s recent reforms in the FX market are believed to be contributing to the naira’s improved stability. In November 2024, the CBN introduced detailed guidelines for the Electronic Foreign Exchange Matching System (EFEMS) to enhance transparency and efficiency in interbank FX trading.
Highlights of the EFEMS framework include:
– Minimum trade amount: $100,000
– Incremental trade size: $50,000
– Approval of Bloomberg BMatch as the official trading platform for EFEMS operations.
Market participants have been mandated to adhere to these guidelines, along with any future updates issued by the CBN.
Optimism for 2025
Analysts are optimistic that these reforms will contribute to greater stability in the FX market. Friday’s gains reflect the early impact of these policies, and stakeholders are hopeful that Nigeria’s foreign exchange system will support sustainable economic growth in the coming months.
The CBN reaffirmed its commitment to fostering an FX environment conducive to transparency, stability, and growth.
By Enoch Odesola| January 5, 2025
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