The naira on Monday appreciated against the dollar at the parallel market as the first foreign exchange (FX) trading day held today on the Electronic Foreign Exchange Matching System (EFEMS) via the Bloomberg BMatch System.
The local currency gained N20 as the dollar traded at the rate of N1,730 as against N1,750 on Friday at the parallel market, also known as black market.
The Central Bank of Nigeria (CBN), on Tuesday last week issued a directive mandating all banks in the interbank foreign exchange market to transition to the Bloomberg BMatch system for FX trading.
The implementation, which went live today, is designed to boost the operational efficiency and transparency of the nation’s FX market.
At the official foreign exchange market, the naira depreciated by 1.69 percent as the dollar was quoted at N1,672.69 on Friday compared to N1,644.86 on Thursday at the Nigerian Autonomous Foreign Exchange Market (NAFEM).
Foreign exchange reserves reached a 34-month high in November, closing at $40.2 billion despite a slight dip towards the end of the month, according to a report by Afrinvest Securities Limited. This represents a 1.1 percent month-on-month growth, equivalent to an increase of $436.2 million.
In the NAFEM window, average daily turnover rose by 16 percent month-on-month to $365.2 million. Consequently, the Naira appreciated by 0.2 percent and 0.3 percent month-on-month against the U.S. dollar, trading at N1,672.69/$1.00 in the NAFEM window and N1,720.00/$1.00 in the parallel market.
Looking ahead to December, the Naira is expected to maintain its positive trajectory, supported by improved sentiment, bolstered reserves, and enhanced market liquidity. Afrinvest anticipates that the Naira will continue to trade within similar ranges, provided there are no unexpected disruptions.
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