The Naira has shown significant strength against the US dollar as the foreign exchange market opened on Monday. According to data from the Financial Markets Dealers Quotations (FMDQ), the Naira appreciated to an impressive N1552.92 per dollar, a substantial improvement from the previous week’s closing rate of N1641.27. This marks a notable gain of N88.35 in just one trading session, reflecting a renewed optimism in Nigeria’s currency.
This recent surge is reminiscent of the Naira’s previous significant gains, with the last notable appreciation occurring on September 26, when it edged the dollar by N91.32. The fluctuations in the forex market have been a persistent challenge for the Naira, which has been subject to volatility for several months. Despite various interventions by the Central Bank of Nigeria (CBN), the currency has struggled to maintain stability.
At the black market, however, the Naira remained steady at N1700 per dollar, unchanged from the previous Friday. This consistency in the parallel market highlights the ongoing challenges faced by the official forex market and the CBN’s efforts to manage the currency’s value.
In a bid to enhance transparency and efficiency in foreign exchange transactions, the CBN introduced the Electronic Foreign Exchange Matching System (EFEMS) in October 2024. This innovative system aims to streamline forex trading in the Nigerian Foreign Exchange Market (NFEM) and could potentially contribute to more stable exchange rates in the future.
As the week progresses, market observers will be keenly watching the Naira’s performance against the dollar, hoping that this positive momentum can be sustained and that it may signal a turning point for Nigeria’s economy in the face of ongoing challenges.