Unofficial market: Naira settles at N1,520/$
The Nigerian naira posted decent gains against the American dollar on the parallel foreign exchange market during the mid-week trading session, amid ongoing improved market sentiments in Nigeria’s capital market.
Currency traders exchanged the naira at an average rate of N1,515 on Wednesday, up from N1,520/$ on Monday, representing a gain of N5 within a single day.
The changing dynamics in Nigeria’s foreign exchange market can be partially attributed to the CBN’s ongoing reforms.
TThis CBN-backed platform, using Bloomberg’s BMatch system, ensures more transparency and effective price discovery in the FX market by allowing authorized dealers to place anonymous orders into a central limit order book.
The system has tamed exchange rate swings by reducing market distortions and providing the CBN with better supervision.
Consequently, the Nigeria Foreign Exchange Code introduced by the CBN in January 2025 further amplified market stability. The monetary rule set guidelines for ethical behavior, governance, execution, information exchange, risk management, and settlement procedures in the FX market. Investor confidence has increased due to these reforms, which bring Nigeria’s FX market into line with international best practices.
