Market News
Naira closes flat in four days of new year trading - BUSINESSDAY
BY Hope Moses-Ashike
The naira on Tuesday closed flat across foreign exchange (FX) markets. The market has remained calm since the introduction of the electronic FX trading platform early December 2024 by the Central Bank of Nigeria (CBN).
After trading on Tuesday, the naira depreciated marginally by 0.1 or N2 as the dollar was quoted at N1,538 compared to N1,536 quoted on Monday at the Nigerian foreign Exchange Market (NFEM), data from the CBN indicated.
Authorised dealers quoted the dollar as high as N1,543 on Tuesday, lower than N1,537.50 on Monday. The market recorded a lower bid rate of N1,531 on Tuesday from N1,530 on Monday.
The local currency closed steady at rates between N1,660 and N1,665 in the parallel market, also known as the black market.
On the FMDQ Securities Limited platform, the naira closed at N1,537.03 per dollar on Tuesday, slightly lower than N1,536.58/$ closed on Monday.
The naira has witnessed a notable recovery, appreciating by N125 against the dollar within a month following the implementation of the Electronic Foreign Exchange Matching System (EFEMS).
The introduction of EFEMS was first announced by the CBN on October 3, 2024, as part of a series of reforms aimed at addressing speculation and enhancing transparency in Nigeria’s foreign exchange market. This system was specifically designed for authorised dealers operating within the Nigerian Foreign Exchange Market (NFEM) and became operational on December 2, 2024.
Ayodeji Ebo, an investment professional, said the EFEMS symbolises Nigeria’s strategic initiative to forge a sustainable and attractive FX environment for investors. According to him, this ambitious programme holds considerable promise, as it aims to enhance the stability and predictability of currency transactions.
He said its success is contingent upon the diligent implementation of sound policies, comprehensive structural economic reforms, and the stabilisation of FX supply sources, which include not only the crucial oil exports but also a diverse range of non-oil exports that can contribute to the country’s economic resilience.
