The CBN’s new EFEM system works as the naira continues to appreciate against the US dollar in foreign exchange marketsThe latest exchange rate shows that the dollar’s value crashed by over N100 in just one trading dayNigerians hope that the Nigerian currency’s strong performance will continue across all forex markets
Henzodaily.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, the naira, continues to perform strongly in foreign exchange markets, following the newly introduced electronic forex trading framework by the Central Bank of Nigeria (CBN).
According to CBN’s exchange rate portal data, the dollar crashed to N1,567 in the Nigerian Foreign Exchange Market (NFEM) window on Thursday, November 5.
Naira value rises in official market against dollar
Photo credit: Bloomberg/contributor
Source: Getty Images
Thursday’s exchange rate represents a 2.5% or N41 appreciation for the naira compared to N1,608 quoted on Wednesday, December 4.
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The improved forex supply aided the performance of the naira in the foreign exchange markets.
FMDQ reports that authorised forex dealers carried out $286.33 million transactions on Thursday.
It was the same story for the naira in the black market as BDC traders who spoke to Henzodaily.ng said the dollar has crashed significantly.
Abudulahhi a BDC trader said:
“The naira-dollar exchange rate is very volatile right now. I can’t provide an exact figure. Currently, I am buying one dollar at a fixed rate of N1,620, while my selling rate depends on how much the buyer wants.”
Snapshot of official naira exchange rates
CFA: N2.63Yuan/Renminbi: N221.97Danish Krona: N226.77Euro: N1691.31Yen: N10.68Riyal: N429.33South African Rand: N88.84Swiss Franc: N1819.06Pounds Sterling: N2044.87
CBN EFEM system
Earlier, Henzodaily.ng reported that to strengthen the governance and transparency of Nigeria’s foreign exchange market, the CBN introduced revised guidelines for the NFEM.
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Under the new framework, authorized dealers are required to facilitate FX transactions for businesses and individuals while ensuring adherence to regulations.
These dealers are tasked with conducting due diligence, providing transparent pricing and offering market access through digital solutions.
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Source: Henzodaily.ng