On Monday, December 2, 2024, the Nigerian currency rose against the US dollar in the parallel market as the first FX trading day began on the Electronic Foreign Exchange Matching System (EFEMS) through the Bloomberg BMatch System.
The naira gained N20 as the US greenback traded at N1,730 against N1,750 on Friday, November 29, 2024, in the parallel market.
Last week, the Central Bank of Nigeria (CBN) issued a directive asking all banks operating in the interbank foreign exchange market to move to the Bloomberg BMatch System for FX trading.
The implementation of the BMatch system went live on Monday, December 2, 2024. The platform enhances Nigeria’s FX market’s operational efficiency and transparency.
However, the naira fell 1.69% in the official foreign exchange window as traders quoted the dollar at N1,672.69 on Monday, December 2, 2024, as against the N1,644 it traded on Friday, November 29, 2024.
In the official window, also known as the Nigerian Autonomous Foreign Exchange Market (NAFEM), the average daily turnover increased by 16% monthly to $365.2 million.
Consequently, the naira dropped in value by 0.3% monthly against the dollar, trading at N1,672.69 to a dollar.
Experts say the naira is expected to maintain a positive movement, supported by improved confidence in the FX market, rising reserves, and enhanced market liquidity.
Abbas Yishau, a parallel market FX trader, disclosed to TimesNow.com.ng that the US dollar was ample in the parallel segment of the FX market on Monday, December 2, 2024, which led to a positive outcome.
TimesNow.com.ng earlier reported that the Nigerian Autonomous Foreign Exchange Market (NAFEM) daily turnover rose 226% in the first six months of 2024 relative to the previous year, demonstrating the success of reforms.
The development comes as the CBN asked customers to report cash withdrawal challenges in any bank beginning December 1, 2024, amid an ongoing cash crunch.
The governor of CBN, Olayemi Cardoso, stressed penalties for failing to ensure cash availability, highlighting a 72% increase in foreign portfolio inflows and a growth in forex reserves from $32 billion to over $40 billion FX reserves, the highest in three years.
Proofread by Kola Muhammed, journalist and copyeditor at TimesNow.com.ng
Source: TimesNow.com.ng
