Naira Gains Three Days of Consecutive Appreciation

The Nigerian naira has shown significant gains in recent days as trading data reveals a steady appreciation of the naira across both official and parallel markets. On the Nigerian Autonomous Foreign Exchange Market, the currency closed at 1,567/$ on Thursday, a notable improvement from 1,608/$ the previous day and a substantial leap from 1,660/$ on Monday.

The parallel market has mirrored this positive trend, with the naira trading at 1,645/$ and showing a 4.64 percent appreciation over just four days.

The Electronic Foreign Exchange Matching System represents a strategic intervention by the CBN to enhance market transparency and reduce speculative activities. According to a circular by Omolara Duke, Director of Currency Operations, the new platform will enable immediate reflection of interbank foreign exchange transactions and provide real-time pricing data.

CBN’s revised guidelines emphasize a transparent pricing framework, prohibiting off-market rate negotiations and ensuring all transactions align with the Nigeria Foreign Exchange Market (NFEM) rates. The system aims to eliminate market distortions and provide the central bank with improved regulatory oversight.

“The pricing of foreign exchange transactions in the NFEM shall be undertaken on the Electronic Foreign Exchange Matching System,” the circular states, signaling a commitment to a more structured and accountable foreign exchange environment.