New Exchange Rate: Naira Appreciates Against US Dollar in Forex Markets
- The naira recorded an improvement in value against the United States dollar in the foreign exchange market
- New data showed that the naira improved in the official market by 0.09% and also N30 in the unofficial market
- The introduction of the CBN's Electronic Foreign Exchange Matching System has been a major boon for the naira
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 the Nigerian currency, the naira, continued to strengthen against the US dollar in all foreign exchange markets at the end of last week.
According to official market data, the naira closed at N1,533.00/$1 in the Nigerian Foreign Exchange Market (NAFEM) on Friday, December 13, 2024.
Source: Getty Images
Friday's exchange rate represented an N1.50 or 0.09% gain against the dollar compared to N1,534.50/$1, which was transacted on December 12, 2024.
The naira has benefitted from the Central Bank of Nigeria's (CBN) new FX trading system, the Electronic Foreign Exchange Matching System (EFEMS).
The EFEMS system instantly reflects data on all foreign exchange transactions conducted in the interbank market and approved by the CBN.
Speaking to Legit.ng on the naira's recent surge, Aminu Gwadabe, the president of the Association of Bureaux De Change Operators of Nigeria (BCON), discussed reasons for the naira's appreciation.
"The CBN's EFEMS platform has helped eliminate the obscured nature of trading in the official/interbank foreign exchange market."
Naira to dollar in the black market
The naira's positive momentum extended into the parallel market, commonly called the black market.
Street currency traders told Legit.ng that the dollar had also dropped in value against the naira recently.
Abudulahhi, a BDC trader, told Legit.ng:
"On Friday, we sold the dollar at N1,650/$1; this is N30 less than the preceding session’s value of N1,680/$1."
Naira, pounds, euro exchange rate
CBN data also showed the naira strengthened against the Pound Sterling by N12.58, closing Friday's session at N1,942.19/£1.
Against the euro, the currency also gained N2.44 to close at N1,612.85/€1, compared to Thursday’s closing price of N1,610.41/€1.
CBN adjusts customs exchange rate
Legit.ng also reported that the CBN slightly reduced the customs duty exchange used to clear goods at the ports.
The adjustments followed the improvement of the naira in the foreign exchange market against the US dollar.
Importers looking to apply to clear their goods will pay less based on the exchange rate adjustment from Monday.
Proofreading by Nkem Ikeke, journalist and copy editor at Legit.ng.
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Source: Legit.ng
