Abuja, Nigeria — The naira maintained its upward momentum on the parallel market while depreciating on the official exchange platform amid ongoing forex reforms by the Central Bank of Nigeria (CBN).
By the close of trading on Tuesday, the naira appreciated by N10, closing at N1,640 per dollar on the parallel market, compared to N1,650 on Monday. This brings its two-day gain to N20 or 1.2%, from N1,660 recorded last week.
However, the official market saw a decline, with the naira closing at N1,534.55/$1 on Tuesday, a slight dip from N1,533.63/$1 on Monday.
The CBN recently unveiled the Nigeria Foreign Exchange (FX) Code as part of its reform agenda to promote a transparent, liquid, and fair forex market.
The FX Code, according to the CBN, mandates market participants to implement robust anti-money laundering measures and ensure compliance with global financial regulations to safeguard the domestic and international financial systems.
“The FX Code is being developed to respond to emerging issues and address the dynamic nature of the financial markets, specifically targeting evolving challenges within the foreign exchange sector,” the apex bank noted.
The CBN reiterated its commitment to a flexible exchange rate system driven by market forces, where the value of the naira is determined by demand and supply dynamics in the foreign exchange market.
By Enoch Odesola| January 30, 2025
