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Exchange rates in various foreign exchange markets have experienced fluctuations as part of the Central Bank of Nigeria’s (CBN) plan to enhance the purchasing power of the local currency.
At the Nigerian Autonomous Foreign Exchange Market, the US dollar traded for less than N800, reflecting positive market response to the CBN’s efforts to clear the remaining FX backlog. Yemi Cardoso, the CBN Governor, emphasized the need for clear, transparent, and harmonized rules governing market operations to ensure the proper functioning of domestic and foreign currency markets.
Cardoso stated, “New foreign exchange guidelines and legislation will be developed, and extensive consultations will be conducted with banks and FX market operators before implementing any new requirements.” He highlighted improvements in FX market liquidity, with daily trade potentially exceeding $1.0 billion.
Data from the FMDQ Platform indicated an exchange rate closure at N794.84 per US dollar. However, at the parallel market, the naira weakened to ₦1,150.00.
Currency traders at Afrinvest Limited noted an 11.1% week-on-week improvement in activity at the NAFEM window, reaching $817.7 billion. Despite marginal recovery in the commodities market, external reserves continued to decline, closing at USD33.20 billion.
At the FMDQ Securities Exchange FX Futures Contract Market, the total value of open contracts for the Naira remained at $4.2 billion. Afrinvest anticipates rate depreciation across different FX market segments in the coming week, following demand-supply imbalances and the CBN’s ongoing reforms in the NAFEM window.
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