Twenty-four hours after depreciating, the naira is now restored to its previous level of appreciation against the US dollar on the official foreign currency market.
The naira appreciated to N1,525 per dollar on Tuesday, according to Central Bank of Nigeria exchange rate data, from N1,538.50 on Monday. Compared to the N1538.50 exchanged the day before, this indicates a gain of N13.5 against the dollar.
However, in the black market, the naira did not gain value, closing Tuesday at N1665 to the dollar, down from N1630 on Monday.
Recall that Monday marked the first time the naira fell in the foreign exchange market since the CBN implemented the Electronic Foreign Exchange Matching System (EFEMS) to facilitate transparent foreign exchange transactions.
Meanwhile, TimesNow.com.ng had reported that Aminu Gwadabe, president of the Association of Bureaux De Change Operators of Nigeria (ABCON), responded to the prospect of the naira reaching N1,400 this week.
Street currency traders are concerned that the dollar may appreciate to N1,400 this week, given its current trend.
Reacting to this, Gwadabe said:
TimesNow.com.ng reported earlier that a minimum deal size of $100,000 is now required for interbank foreign exchange trading using the Electronic Foreign Exchange Matching System, according to new instructions released by the Central Bank of Nigeria.
This is an effort to guarantee Nigeria’s foreign exchange market’s effectiveness, transparency, and compliance.
The guideline was signed by Dr. Omolara Duke, the director of the CBN’s financial markets division, on November 25, 2024.
Proofreading by Nkem Ikeke, journalist and copy editor at TimesNow.com.ng.
Source: TimesNow.com.ng
