Naira appreciates further after CBN releases FX Code

The naira on Tuesday appreciated further in the black market after the Central Bank of Nigeria (CBN) released the foreign exchange (FX) Code and waived the 2025 annual non- refundable license fees Bureau De Changes (BDCs).

The naira gained 0.97 percent or N16 as the dollar was quoted at an average rate of N1,634 on Tuesday compared to N1,650 quoted on Monday at the parallel market, also known as black market.

In the official foreign exchange market, the naira closed flat on Monday as the dollar was quoted at N1,533.50 as against N1,531 quoted on Friday at the Nigerian Foreign Exchange Market (NFEM), data from the CBN indicated.

Authorised dealers quoted the dollar at the highest rate of N1,537 on Monday, stronger than N1,550 on Friday. The market recorded the lowest rate of N1,530 per dollar, lower than N1,515 closed on Friday at NFEM.

The CBN on Tuesday issued a new Foreign Exchange (FX) Code aimed at enhancing market liquidity, transparency and guiding market participants in Nigeria’s foreign exchange sector.

In the FX Code document, the CBN directed market participants to submit compliance reports on adherence to the code by January 31, 2025.

Read also: CBN launches Nigeria fx code

In another development, the apex bank announced the waiver of the non-refundable annual license renewal fee for 2025.

This development was disclosed in a circular dated January 24, 2025, and signed by John S. Onojah, acting director of the financial policy and regulation department.

The circular, addressed to all BDC operators and stakeholders in the financial services industry, highlights the CBN’s commitment to fostering stability, transparency, and efficiency in the foreign exchange market.

The waiver is part of the CBN’s broader strategy to support the ongoing transition to the new BDC regulatory structure, following the release of the “Regulatory and Supervisory Guidelines for Bureau De Change Operations in Nigeria, 2024.” The circular states, “This is to inform all existing bureau de change that further to the regulatory and supervisory guidelines for Bureau De Change Operations in Nigeria, 2024, and the ongoing transition to the new BDC regulatory structure, the Central Bank of Nigeria has approved the waiver of 2025 licence renewal fee, effective immediately.”