New Exchange Rate As Dollar Sells Cheaper in All Forex Markets
- The Nigerian currency has put up a strong performance against the US dollar in the foreign exchange markets
- The latest movement follows the introduction of the Electronic Foreign Exchange Matching System (EFEMS)
- The new EFEMS is expected to provide transparency to the forex market and eliminate speculation
Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
The value of Nigerian currency, the naira, improved in the foreign exchange markets against the United States dollar.
According to data from FMDQ securities, the value of the naira in the Nigerian Autonomous Foreign Exchange Market (NAFEM) closed at N1,643.15/$1 on Tuesday, December 3, 2024.
Source: Getty Images
Tuesday's exchange rate represents a 1.8% or N29.54 improvement compared to Monday’s closing price of N1,672.69/$1.
The latest exchange rate is the second straight gain since the Central Bank of Nigeria kicked off the Electronic Foreign Exchange Matching System (EFEMS).
Legit.ng earlier reported that EFEMS's implementation of the forex system comes with diverse implications for all segments of the financial markets that deal with FX.
There are high hopes and expectations that the EFEMS will lead to a rebound in the value of the naira across markets.
This is because the system will instantly reflect data on all FX transactions conducted in the interbank market and approved by the CBN.
The central bank also said it would publish real-time prices and buy-sell orders data from this system.
Naira to dollar at black market
It’s the same story for the naira in the unofficial foreign exchange market.
Abdullahi, a Bureau de Change (BDC) trader, told Legit.ng that a dollar was sold at N1,725 on Tuesday.
He said:
'We reduced the dollar rate in the parallel market from N1,730 on Monday to N1,725 per dollar."
Snapshot of naira exchange rates against other currencies
Also, CBN data provided a breakdown of the naira exchange rate against other currencies on Tuesday, December 3.
- Pounds Sterling: N2,082.36
- Euro: N1,729.25
- Swiss Franc: N1,858.98
- Yen: N11.03
- CFA: N2.67
- Riyal: N437.29
- Danish Krona: N231.81
- Yuan/Renminbi: N225.53
- South African Rand: N90.72
15 key points to note about EFEM
Earlier, Legit.ng reported that the CBN's new Electronic Foreign Exchange Matching System (EFEMS) went live on Monday.
The EFEMS will streamline foreign exchange transactions in the Nigerian foreign exchange market.
There are 15 key points about the EFEM and how it affects forex market operation.
Proofreading by James, Ojo Adakole, journalist and copy editor at Legit.ng.
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