The Nigerian naira has achieved relative stability in the foreign exchange market, buoyed by several key factors. Inflows from the Nigerian diaspora returning home for the Christmas holiday, proceeds from a recent Eurobond issuance, and enhanced market transparency introduced by the Central Bank of Nigeria (CBN) have all contributed to this positive trend.
These developments have led to improved liquidity and boosted confidence in the foreign exchange market. The naira is currently trading within a range of N1,660 to N1,525 per dollar in the official market and has remained steady at approximately N1,660 in the parallel market.
On Thursday, the naira appreciated against the dollar, gaining N5 to close at N1,540/$, compared to N1,545/$ on Wednesday, according to data from the CBN. In the black market, the local currency held firm at N1,660 per dollar.
Authorized currency dealers reported the highest rate for the dollar at N1,550 on Thursday, an improvement from N1,565 on Wednesday. Meanwhile, the market’s lowest rate remained stable at N1,531 per dollar at the Nigerian Foreign Exchange Market (NFEM).
The naira’s stability is largely attributed to the CBN’s implementation of the Electronic Foreign Exchange Matching System (EFEMS), which has enhanced transparency and efficiency in foreign exchange trading. This system has played a critical role in fostering a more stable and reliable foreign exchange environment in Nigeria.
