The naira gains over 8% in a week, hitting N1,535/$, driven by CBN’s new FX platform and increased market stability.
[dropcap]T[/dropcap]he naira strengthened significantly against the US dollar last week, appreciating by 8.24% following the Central Bank of Nigeria’s (CBN) introduction of a new foreign exchange platform.
The currency, which closed at N1,672.69/$ on Friday, 29 November, rallied to N1,535/$ by Friday, 6 December, marking a gain of N137.69 within seven days.
Also read: Naira appreciates at official forex market, depreciates on black market
This improvement comes amid the operationalisation of the Bloomberg BMatch system, designed to enhance transparency and efficiency in Nigeria’s foreign exchange market.
The platform promotes seamless trade matching and price discovery, reducing the gap between the official and parallel markets.
Throughout the week, the naira saw steady gains:
- Monday, 2 December: N1,660/$, a 0.76% rise.
- Tuesday, 3 December: N1,625/$, a 2.11% increase.
- Wednesday, 4 December: N1,608/$, a 1.05% gain.
- Thursday, 5 December: N1,567/$, a 2.55% improvement.
- Friday, 6 December: N1,535/$, a 2.04% rise.
In addition to the FX reforms, Nigeria’s return to the international bond market bolstered liquidity. The Federal Government raised $2.02 billion through Eurobonds, which attracted $9.01 billion in subscriptions.
This inflow of funds, alongside increased foreign exchange reserves exceeding $40 billion, enhanced investor confidence and stabilised the naira.
Dr Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprise, praised the naira’s recovery, highlighting its potential to ease inflation and reduce business costs.
However, he stressed the importance of sustaining fiscal discipline to complement monetary measures.
Similarly, Adeyemi Oyerinde, Director-General of the Nigeria Employers’ Consultative Association, emphasised the need for long-term strategies.
He urged the government to focus on increasing crude oil production, encouraging non-oil exports, and supporting domestic refining to reduce reliance on imported fuel.
The organised private sector has lauded the naira’s performance as a relief for businesses struggling with forex challenges.
The currency’s recovery marks a critical turning point for Nigeria’s economic landscape, offering hope for greater financial stability in the coming months.
Source: Read more at saharareporters.com
Quadri Olaitan is a journalist and contributor to Freelanews.com, covering news, public affairs, and human-interest stories.
