The naira showed a marginal appreciation in the parallel foreign exchange (FX) market on Thursday, strengthening to N1,627 per dollar, up from N1,650/$ recorded the previous day. This marks a 1.39 per cent gain for Nigeria’s local currency......CLICK HERE TO CONTINUE READING>>>.....CLICK HERE TO CONTINUE READING>>>
Bureau de change (BDC) operators in Lagos quoted the buying rate of the dollar at N1,610, while the selling rate stood at N1,627, reflecting a profit margin of N17.
Market traders attributed the naira’s slight rebound to a drop in demand for the dollar. Additionally, the Central Bank of Nigeria’s (CBN) intervention—which saw a steady supply of dollars through commercial banks—has contributed to easing pressure on the local currency.
The appreciation trend was also observed in the official market. Data from the Nigeria Foreign Exchange Market (NAFEM) showed that the naira strengthened from N1,533/$ on Monday to N1,493/$ by Thursday. The currency traded at N1,520/$ on Tuesday before gaining further to N1,506/$ on Wednesday and eventually N1,493/$ on Thursday.
Meanwhile, the CBN has taken additional steps to enhance Nigeria’s foreign exchange market. On January 28, the apex bank officially launched its FX code, a regulatory framework aimed at promoting best practices and improving market integrity.
The FX code, which took effect on December 2, 2024, is designed to strengthen the wholesale FX market and reinforce Nigeria’s flexible exchange rate regime, according to the CBN.