Naira surges on CBN's FX reforms

Naira surges on CBN’s FX reforms

1 minute, 11 seconds Read
By Akinsuroju Olubunmi

Naira surges on CBN’s FX reforms.

Naira surges on CBN's FX reforms

Nigeria’s currency, the naira, has reached a two-month peak of N1,382.35 per dollar, buoyed by foreign exchange reforms implemented by the Central Bank of Nigeria (CBN) to bolster investor confidence and enhance dollar supply.

The latest data from the FMDQ Securities Exchange indicates that the naira hasn’t closed at such a robust rate since January 29, 2024, underscoring the positive impact of the CBN’s initiatives on the official foreign exchange market.

Following Thursday’s trading session, the naira appreciated by 7.98 percent compared to its previous rate of N1,492.61 per dollar at the Nigerian Autonomous Foreign Exchange Market (NAFEM).

However, at the parallel market, the local currency experienced a slight depreciation of 1.98 percent, with the dollar closing at N1,510, down from N1,480 the previous day.

The CBN’s comprehensive FX reforms have included measures to unify exchange rates, liberalize the FX market, clear FX backlog obligations, and introduce systems to enhance transparency and stability.

In addition, the recent Monetary Policy Committee (MPC) meeting saw adjustments to key policy rates, aimed at addressing inflationary pressures and maintaining exchange rate stability.

Deputy Governor Muhammad Sani Abdullahi highlighted the positive impact of these measures on exchange rate volatility and external reserves, projecting marginal increases in reserves by the end of March 2024.

Despite the naira’s recent gains, stakeholders remain cautious, emphasizing the need for sustained efforts to bolster foreign exchange inflows and ensure long-term stability.

Naira surges, FX Reforms

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