The Nigerian currency, the naira, remained steady across foreign exchange markets on Tuesday, December 17, 2024, as dollar demands moderated.
At the end of Tuesday’s trading, traders quoted the dollar at N1,534.10 per dollar, slightly higher than the N1,533.56 it traded the previous day at the Electronic Foreign Exchange System (EFEMS).
Naira records mix performance
Data from the Central Bank of Nigeria (CBN) shows that traders quoted the dollar at N1,555 per dollar, the same as Monday, December 16, 2024.
The forex market recorded the lowest rate of N1,522 per dollar, weaker than the N1,520 quoted on Monday.
Meanwhile, information from the FMDQ Exchange shows that the naira appreciated by 0.07% on Tuesday, December 17, 2024, to trade at N1,544.05.
The naira depreciated by 0.03 during intraday trading at a high of N1,552.50 and a low of N1,530.50, representing a 0.56% depreciation at the Nigerian Autonomous Foreign Exchange Market (NAFEM).
Naira appreciates in the black market
However, the naira rallied in the parallel segment of the foreign exchange market, trading at N1,665 per dollar, compared to the N1,680 per dollar it traded the previous day.
The naira has remained relatively stable in the foreign exchange markets partly due to the CBN’s newly introduced Electronic Foreign Exchange System (EFEMS).
The new platform has boosted transparency and efficiency in the FX market, helping traders determine the actual value of the naira.
The EFEMS automatically matches buyers and sellers, allowing for market transparency.
Analysts laud EFEMS introduction
Analysts have lauded the introduction of the EFEMS, stating that it allows traders to be efficient while showing the local currency’s actual value.
Janet Ogochukwu, senior banker and economist, disclosed that EFEMS has proven to be a game-changer in the FX market because it allows traders to see the actual value of the naira.
“It boosts FX transparency by matching buyers against sellers in real-time. Now, the naira is finding its actual value in the FX markets.
“The result is that the naira has been on the upswing since the EFEMS was introduced on December 2, 2024., she said.
Naira Gains Over N147 in two weeks
Legit.ng earlier reported that the transparency in the EFEMS has led to naira’s rebound in the FX market.
The new system reportedly caused currency speculators to source forex elsewhere, leading to the naira’s rebound.
Legitimate traders who cannot meet the EFEMS’ requirements have opted for the parallel market, allowing the naira’s value to stabilise
