During the trading session, the naira fluctuated between N1,525/$1 and N1,535/$1 before finally settling at N1,531.25/$1 on Wednesday, signifying an improvement from the last close of N1,536.82/$1.

Wednesday appreciation marks a further improvement of the naira against the dollar, after the naira rebounded on Friday from its three days consecutive loss reversing the depreciation for the week.

The Naira not only improved in the official market but also appreciated in the parallel market, gaining 0.50% against the British pound to N1980/£1, from N1,990/£1.

Likewise, it gained 1.81% to N1,630/€1, from Friday’s close of N1,660/€1. However, it declined by 0.33% to N1,545/$1 from N1,540/$1.

Nigerian Foreign Exchange Market (NFEM) remained relatively stable on Wednesday supported by Central Bank of Nigeria (CBN) consistent intervention.

The Nigerian currency is expected to remain stable suppressing the dollar exchange supply.

Data from the Central Bank of Nigeria showed that in the Nigerian Foreign Exchange Market (NFEM), the dollar was quoted at the rate of N1,537 on Friday, compared to N1,538 quoted on Thursday, the first trading day of the new year.

The market recorded the highest bid as authorised quoted the dollar at N1,545 on Friday, the same rate as of Thursday. The lowest bid printed at N1,533, lower than N1,532 quoted the previous day.

In the parallel market, also known as black market, the naira steadied at N1,665 per dollar on Friday.

At the FMDQ Securities Exchange Limited platform, the FX market opened at N1,538 per dollar and closed at N1,534.05/$1 on Friday.

The data from the FMDQ revealed that the dollar was quoted at the highest rate of N1,539 and lowest bid rate of N1,530.50 at the Nigerian Autonomous Foreign Exchange Market (NAFEM).

The data was computed based on FMDQ Exchange FX closing rate methodology using data from Bloomberg BMatch.

In November 2024, the Central Bank issued comprehensive guidelines for the operations of the interbank foreign exchange trading system via the Electronic Foreign Exchange Matching System (EFEMS), pegging the minimum tradable amount at $100,000 with incremental clip sizes of US$50,000.00, to promote transparency and efficiency in the FX market.

To facilitate interbank trading under this framework, the CBN approved Bloomberg BMatch as the designated platform supporting EFEMS. All market participants are mandated to adhere strictly to the guidelines and any future amendments issued by the CBN.

According to official market data published by FMDQ, the naira closed Thursday at N1,481.49/$1 against N1,488.60/$1 posted in the previous segment on Wednesday.

Thursday’s rate signifies a N7.11 or 0.48 per cent appreciation from N1,488.60 recorded on Wednesday.

Within the business period on Thursday, foreign exchange turnover increased by 3.84 per cent ($213.31 million) from $205.43 million recorded in the previous segment on Wednesday.

The domestic unit also experienced an intraday high of N1,401.00 and a low of N1,505.00 to a dollar before closing at N1,481.49/$1 at the authorised session of the FX market on Thursday.

A review of the official market currency data posted this week indicated that the naira has been trading at N1,400 and above the mark at the segment in the past week.

On Monday, market data posted shows that the naira closed at N1,476.12/$1. The currency depreciated further on Tuesday and Wednesday to trade N1,476.95 and N1,488.60 to a dollar, respectively.

Similarly, the local currency recorded a marginal gain at the parallel market on Thursday after the currency slipped slightly in the previous session on Wednesday.

According to the unofficial market data, the dollar was exchanged at N1,496.4 and above on Thursday, as against N1,498.4/$1 and above recorded on Wednesday.

On Tuesday, the dollar exchanged at N1,477.9/$1, as against N1,487.4/$1 posted on Monday.

The continuous depreciation of the naira against the greenback currency in recent months came amidst a significant surge in demand for the dollar and market speculation.