The naira rebounded massively against the US dollar in the official market on Tuesday, January 28, 2025, after the Central Bank of Nigeria (CBN) launched the FX code to enhance market transparency.
This is the third day in less than a week that the naira will show strength against the US dollar, which has declined for 12 months due to Donald Trump’s policies.
Experts have praised the CBN for maintaining market liquidity via various policies to boost FX stability.
They say the local currency may have found its actual value after floating by the Nigerian market, stressing that the current rate will inspire confidence among investors.
Janet Ogochukwu, senior banker and economist, praised the CBN for introducing policies that boosted the naira’s value in the FX market.
Recently, the volatility in the FX market has thawed, leading to a stable and predictable exchange rate.
However, at the close of trading on Tuesday, January 28, 2025, the Nigerian naira closed at N1,522.68, up from N1,533 on Monday, January 27, 2025, representing a 0.71% gain.
Data from the FMDQ Exchange reveals that the dollar was quoted at a high of N1,536.50 and a low of N1,521.50.
The naira also remained stable in the parallel segment of the forex market, trading at N1,660, the same rate as the previous day.
The CBN launched the FX code on Thursday, January 28, 2025, warning banks of severe consequences if they violate it.
Meanwhile, the gap between the parallel and official windows widened by N138 from N127 observed on Monday, January 27, 2025.
TimesNow.com.ng earlier reported that the Nigerian naira traded slightly negatively on Monday, January 27, 2025, after a massive rally on Friday, January 24, 2025.
The naira, which rose below the N1,5400 per dollar ceiling, on Friday fell marginally on Monday, trading at N1,1533.63, down from the N1,531.50 it traded on Friday, January 24, 2024.
With the current rate, the naira maintains relative stability in the FX market compared to the previous weeks as volatility thawed amid the decline in FX reserves.
Proofread by Kola Muhammed, journalist and copyeditor at TimesNow.com.ng
Source: TimesNow.com.ng
