UPDATED: Naira Appreciates Against US Dollar – Reason 

UPDATED: Naira Appreciates Against US Dollar – Reason 

The Nigerian currency, the naira, has shown a consistent appreciation trend following successful Eurobond sales and the implementation of the Electronic Matching System by the Central Bank of Nigeria (CBN) on December 2, 2024.

According to data released by the CBN, the naira rose by N1,533 from N1,570 on December 6, 2024.

Moreover, information from the FX markets indicates that the naira has strengthened by over N300 in the past three weeks, attributing this positive trajectory to the introduction of the Electronic Foreign Exchange Matching System (EFEMS) by the CBN.

In an official communication instructing banks to begin using the Bloomberg BMatch as the EFEMS for forex trading activities starting from December 2nd, 2024, the CBN highlighted the role of this system in the naira’s recent performance.

“Banks are strongly advised to liaise with Bloomberg representatives to expedite the onboarding process and address any technical or operational concerns promptly.

“The CBN will deploy its regulatory power to enhance the implementation of this directive and reserves the right to impose sanctions when necessary,” they said.

Over the weekend, the naira closed at N1,535 and N1,555 against the US dollar in the official Nigerian Foreign Exchange Market (NFEM) and the parallel market (black market) respectively.

This improvement in the naira’s value signifies significant progress and stability in Nigeria’s foreign exchange market, which could bode well for the country’s economy.