The Nigerian naira has continued to rally, though it is still somewhat sluggish, trading at N1,500.41 in the official Foreign Exchange Market (NFEM).
Last week, the local currency closed at the parallel market at N1,540 per dollar, signalling hope of a more stable FX rate on the streets.
Experts said currency speculators lost over N10 billion as the naira continues to rally against major currencies, and they predict more losses.
According to reports, dealers are offloading their dollar holdings for fear of losing more funds.
Forex traders disclosed that the naira’s recovery has made it challenging for speculators and hoarders to make new purchases.
According to them, CBN’s directives to extend the $25,000 weekly sale to currency dealers at the NFEM positively impacted the naira.
They said the dollar sales to BDCs at the official market rate were to allow the operators to meet increasing demand for FX.
TimesNow.com.ng previously reported that the President of the Association of Bureau de Change Operators of Nigeria (ABCON), Aminu Gwadabe, said the CBN was committed to solving the FX issues in the country.
Gwadabe said the gesture aligned with the apex bank’s efforts to ensure continuity and stabilising the FX market.
CBN announced the deadline extension on Monday, February 3, 2025, allowing eligible operators to access the official window for forex transactions.
Gwadabe urged commercial banks to partner with CBN and BDC operators to implement the circular to ensure smooth operations.
According to Gwadabe, ABCON members received the news of the CBN’s extension with glee, considering it part of the regulator’s efforts to ensure continuity and commitment to the subsector’s inclusiveness in the official window.
Meanwhile, experts have said the deadline extension would ease the pressure on the naira, which has been bullish against the dollar.
The Nigerian currency has been on a winning streak against the dollar, appreciating below the N1,500 ceiling.
The local currency experienced its best moments on Friday, January 31, 2025, when it rose to N1,474 per dollar, a seven-month high.
Analysts have predicted more wins for the naira following a series of policies implemented by the CBN, notably, the FX Code launch. The FX Code boosts transparency and FX liquidity in the foreign exchange market.
Janet Ogochukwu, senior banker and economist disclosed that the various policies and interventions of the CBN will go a long way in boosting the naira’s value.
She stated that despite the sluggish upstart of the naira in February, there is optimism that the local currency will eventually rally.
TimesNow.com.ng earlier reported that the naira is reversing its gains against the US dollar after a week-long appreciation in the final week of January.
