The naira has appreciated to N1,640 per dollar in the parallel market, strengthening from N1,655 per dollar recorded on Monday.
Similarly, data from the Central Bank of Nigeria (CBN) shows that the official exchange rate in the Nigerian Foreign Exchange Market (NFEM) improved, with the naira trading at N1,526.3 per dollar, compared to N1,533.5 per dollar on Monday, marking a N7.2 gain.
As a result, the gap between the official and parallel market rates narrowed from N121.5 to N113.7 per dollar.
This appreciation follows months of volatility, with the naira now maintaining a relatively stable range between N1,550 and N1,520 per dollar since December.
Analysts credit this stability to ongoing monetary policy reforms by the CBN, including the Electronic Foreign Exchange Matching System (EFEMS) introduced last December and the upcoming FX code set for launch by the end of January.
Taiwo Oyedele, chairman of Nigeria’s Fiscal Policy and Tax Committee, explained that the new FX code would enhance transparency, helping to remove about $20 million daily from speculative trading in the market.
CBN Governor, Olayemi Cardoso highlighted that the exchange-rate reforms have positioned the naira more competitively, presenting new opportunities for investors.
Speaking at a virtual briefing hosted by the Nigeria Economic Summit Group (NESG), Cardoso noted that while the naira had experienced sharp depreciation last year, its current levels now offer investors a more competitive entry point.
With continued policy adjustments, there is cautious optimism that the naira’s stability will persist in the months ahead.
