The naira gained slightly, appreciating to N1,627 against the dollar on Thursday in the parallel segment of the foreign exchange (FX) market. This represents a 1.39 percent increase from the N1,650/$ recorded on January 24.
In the official FX window, the naira strengthened from N1,533/$ on Monday to N1,493 on January 30, according to data from the Nigeria Foreign Exchange (NAFEM) platform.
Currency traders, also known as bureau de change (BDC) operators in Lagos, quoted the buying rate of the dollar at N1,610 and the selling price at N1,627, leaving a profit margin of N17.
Parallel market traders attributed the naira’s appreciation to a lower demand for the dollar. BDC operators also noted that “the intervention by the Central Bank of Nigeria (CBN) on the sales of dollars through banks this week has been steady.”
The local currency, on the official market, traded at N1,520 at the close of business on Tuesday, further appreciating to N1,506 on Wednesday, and N1,493 on Thursday.
Additionally, on January 28, the Central Bank of Nigeria officially launched the foreign exchange (FX) code to promote best practices within the financial sector.
The CBN stated that the FX code, which became effective on December 2, 2024, is designed to strengthen and enhance the integrity and effective functioning of Nigeria’s wholesale FX market.
The financial regulator further explained that the initiative would facilitate a better functioning market, bolstering Nigeria’s flexible exchange rate regime.
Boluwatife Enome
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