The Nigerian naira saw a notable appreciation in the parallel market on Tuesday, climbing to N1,350 per dollar from N1,430 per dollar the previous day.
Similarly, in the Nigerian Foreign Exchange Market (NAFEM), the naira appreciated to N1,382.95 per dollar, marking a significant improvement from N1,408.04 per dollar on Monday, according to data from FMDQ.
This surge in the naira’s value reflects a 25.09 appreciation, widening the margin between the parallel market rate and NAFEM to N32.95 per dollar.
Over the past month, the naira has seen a remarkable surge of 18.28 percent, reaching N1,408.04 on Monday from a low of N1,665.50 recorded on February 23, 2024, based on data from the FMDQ Securities Exchange.
The recent strengthening of the naira can be attributed to various foreign exchange reforms initiated by the Central Bank of Nigeria (CBN). These reforms include consolidating exchange rate windows, liberalizing the FX market, resolving FX backlog obligations, implementing a Price Verification System (PVS), imposing limits on banks’ Net Open Position, and restructuring the Bureau De Change (BDC) segment.
Furthermore, the CBN sold dollars to Bureau De Change (BDC) Operators at a rate of N1,251, with BDCs directed to sell to eligible customers at a rate not exceeding 1.5 percent above the purchase price, as per a circular issued by the CBN. These measures aim to foster a more stable, transparent, and competitive foreign exchange market in Nigeria.