Again, Traders Crash Dollar Exchange Rate as Naira Appreciates
- The Nigerian currency continues its strong performance against the US dollar in the foreign exchange market
- Latest data showed that the naira improved in the official market and also in the unofficial market
- The naira performance comes on the back of the Electronic Foreign Exchange Matching System (EFEMS) introduction
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 Nigerian currency continued to strengthen in value against the US dollar in various currency market segments.
According to data, the naira closed at N1,535/$1 a dollar in the Nigerian Foreign Exchange Market (NAFEM) on Friday, December 6, 2024.
Source: Getty Images
Friday's exchange rate represents a 2.0% or N32 gain against the dollar compared to the preceding day’s value of N1,567/$1.
This happened despite a 38.8%, or $111.18 million, decline in the value of forex transactions at the official market, to $175.15 million from the $286.33 million recorded a day earlier.
Naira's strong performance is thanks, to the new foreign exchange (FX) trading system of the Central Bank of Nigeria (CBN), known as the Electronic Foreign Exchange Matching System (EFEMS).
The CBN introduced the EFEMS to eliminate distortions and enhance efficiency in Nigeria’s volatile foreign exchange market.
Naira to dollar at black market
The good news continued for the naira against the US dollar in the parallel market, also known as the black market.
Street currency traders told Legit.ng that the dollar crashed significantly.
Abudulahhi a BDC trader said:
"The CBN's new forex system is working; it has reduced the demand for dollars on the street. Most of us are now selling at a loss.
"As of Tuesday last week, I sold the dollar at N1,705/$1. By Friday, it was N1,580/$1 that is a massive loss for us who bought at above N1,700"
CBN naira exchange rates
- CFA: N2.59
- Yuan/Renminbi: N211.22
- Danish Krona: N217.75
- Euro: N1,624.41
- Yen: N10.25
- Riyal: N408.15
- South African Rand: N85.39
- Swiss Franc: N1,751.07
- Pounds Sterling: N1,960.61
CBN adjusts Customs exchange rate
In a related development, the CBN has announced a new dollar exchange rate to clear imported goods at airports and ports.
The new exchange rate reflects the performance of the naira in the official and unofficial FX markets.
The development means importers will pay N55 less from Monday.
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Source: Legit.ng
