The naira has recorded steady appreciation over the past 21 days, reflecting increased stability in Nigeria’s foreign exchange market.
Precisely, on the parallel market, some FX dealers in Lagos traded the naira at N1,490/$ on Friday and in Enugu it went as low as N1480/$.
On the official Nigerian Foreign Exchange Market (NFEM) according to data released by the cenrral Bank of Nigeria, naira exchange rate against the dollar closed at N1,500.7/$.
On the parallel market, the naira exchange rate has significantly appreciated comparing the N1,620/$ it was at the beginning of this month to N1,490/$ on Friday, representing a N130 gain so far this month. However, on the official FX market the naira which stood at N1,477.9/$ on January 31, closed yesterday at N1,500.73 to a dollar.
According to THISDAY report, the President of the Capital Market Academics of Nigeria (CMAN), Prof. Uche Uwaleke, attributed the naira’s improved stability to CBN-led initiatives, including the forex matching system, electronic matching system, and the FX code of conduct.
“I think the stability we are witnessing has a lot to do with some of the measures introduced by the Central Bank measures designed to enhance transparency in the forex market.
“Specifically, I’m referring to the BMatch electronic matching system, and the FX code of conduct. These initiatives have improved transparency and put banks on their toes, knowing that any breach of the code will result in sanctions. That has gone a long way in stabilising the market,” Uwaleke said.
