eNaira Surges in Value, Hits N18.32 Billion as Naira Trades Better Than Other Global Currencies
- The eNaira’s value increased to 78.8% in the first 10 months of 2024 to N18.32 billion
- CBN data reveals that the digital currency stabilised in the first quarter of 2024, rising to N13.98 billion
- However, compared to other global currencies, the physical naira remained relatively stable against the dollar
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Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
The value of eNaira, Nigeria’s digital currency designed by the Central Bank of Nigeria (CBN), increased by 78.8% per year to N18.32 billion in the first 10 months of 2024 from N11.66 billion in the previous year.
The CBN’s economic monthly report indicated that the naira’s value stabilised in the first quarter of 2024 at N13.98 billion last year from the previous quarter.
Source: UGC
eNaira surges in value
The value rose by 31% per year to N18.38 billion in the second quarter but dropped by 0.16% to N18.35 billion in Q3 2024.
However, every month, the eNaira’s value dipped by 0.16% to 18.32 billion in October.
During the cryptocurrency surge, CBN introduced the eNaira in October 2021 to lure Nigerians.
The eNair is like the physical currency in value but has a wallet and digital storage holding the digital currency.
The apex bank said it designed the eNaira to deepen financial inclusion by connecting people to the economic ecosystem, supporting payment systems, reducing cash processing costs, enable welfare interventions for Nigerians.
eNaira increases transaction transparency
It also aims to increase transparency in revenue and tax collections, facilitate diaspora remittances, reduce transaction costs, and improve payment efficiency.
Vanguard reports that the CBN governor, Olayemi Cardoso, disclosed that the digital currency will comprehensively review the bank’s payment vision 2025, allowing for a broader and positive impact.
Cardoso revealed at the 59th Annual Bankers Dinner of the Chartered Institute of Bankers of Nigeria (CBN) that initiatives encouraging quick and affordable cross-border payments will boost confidence in the payment system.
“Additionally, the eNaira, our CBDC, holds significant growth potential. We will, therefore, undertake a comprehensive review of its implementation to optimise broad and positive economic impact,” he said.
Physical naira performs better
Meanwhile, the naira has performed better than other global currencies amid the dollar’s surging strength in 2025.
The Nigerian currency has remained relatively strong despite the dollar's surging strength to a two-year high against major currencies on Monday, January 13, 2025.
The naira has remained stable against the US greenback compared to peer currencies.
The naira flatly ended the first week of trading in 2025 as pressure eased on the FX market.
Data from the Central Bank of Nigeria (CBN) shows that the naira began 2025 at N1,538,50 per dollar on January 2, 2025. By the week’s end, the naira slightly fell to N1,544.40 against the dollar, showing a 0.4% marginal decline.
Naira trades better than three currencies
According to data from the FMDQ Exchange, the naira closed Monday’s trading at N1,550 per dollar, losing 0.35% relative to the N1,544.50 it quoted at the Nigeria Foreign Exchange Market (NFEM).
The data shows that authorised dealers quoted the dollar at a high of N1,550 and a low of N1,548 per dollar.
The naira remained steady at N1,655 and N1,665 in the parallel market on Monday, January 13, 2025, relative to the performance of other emerging market currencies struggling against the dollar's dominance.
CBN speaks on releasing eNaira version 2.0
Legit.ng earlier reported that CBN disclosed that more eNaira would be accepted into government accounts as payment for goods and services.
CBN released this in a press statement on Monetary Credit, Foreign Trade and Exchange Policy guidelines for last year.
This was mentioned in a recent press release from the CBN titled "Monetary, Credit, Foreign Trade, and Exchange Policy Guidelines for Fiscal Years 2024–2025".
The statement said that the apex bank would continue to work to allow payers to use the eNaira wallets to deposit funds into government accounts at the CBN.
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Source: Legit.ng
