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Nigeria’s Naira violated the US dollar in parallel markets, with an average trading price of N1,515.
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Naira’s recovery is attributed to ongoing reforms by the Central Bank of Nigeria (CBN), including the Electronic Forex Matching System (BMATCH).
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However, the dollar remains strong due to demand for shelter payments due to global economic uncertainty and tariff threats from U.S. President Donald Trump.
Nigerian Naira has a good exchange rate against the US dollar in parallel forex markets at the cycle fair, due to rising market sentiment in the Nigerian capital market.
Currency traders exchanged Naira at an average rate of N1,515 on Wednesday, higher than N1,520/$ on Monday, which was an N5 increase in one day.
The changing dynamics of Nigeria’s forex market may be attributed in part to the ongoing reforms by CBN.
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The Electronic Forex Matching System (BMATCH), implemented in December 2024, is one of the major policy changes recorded by Naira Recovery.
Also Read: Naira praises USD on the Black Market
This CBN-powered platform ensures more transparent and efficient price discovery in the FX market.
However, the dollar remains strong due to demand for shelter payments due to global economic uncertainty and tariff threats from U.S. President Donald Trump.
In a speech late Tuesday, Trump announced plans to impose automatic tariffs “near 25%” and similar responsibilities on semiconductor and drug imports have driven the dollar’s gains.
Naira’s growth despite FX market turnover dropping by 32%.
Nigeria’s foreign exchange market turnover fell 32.28% to US$11.74 billion in December 2024, down from US$14.39 billion in US$11 billion.
The decline highlighted in the FMDQ exchange’s December monthly financial market report reflects the impact of ongoing foreign exchange market reforms and wider liquidity challenges.
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