- The naira continued its rally against the US dollar for the second trading day on Friday, January 3, 2024
- The local currency appreciated at N1,537, up from N1,538.05 it traded on Thursday, January 2, 2024.
- The development comes as experts say the outlook for the naira is positive as Nigeria reduces food and petroleum products imports in the new year
Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
The Nigerian naira continued its rally against the US dollar as pressure eased in the official forex market in the new year.
Data from the Central Bank of Nigeria (CBN) indicates that in the Nigerian Foreign Exchange Market (NFEM), the local currency was quoted at N1,537 on Friday, January 3, 2025, relative to N1,538 quoted on Thursday, January 2, 2025, the first trading day.
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Naira appreciates for the second day
According to reports, the market saw a heightened bid as dealers quoted the dollar at N1,545 on Friday, January 5, 2025, while they offered the lowest bid at N1,533.
The Nigerian currency also steadied at N1,665 in the parallel market on Friday, January 3, 2025.
Data from the FMDQ Exchange shows that the naira opened trading at N1,538 per dollar, closing at N1,534.05 per dollar on Friday, January 3, 2025.
The FMDQ data showed that the dollar traded at a high of N1,539 and a low of N1,530.50.
CBN’s guidelines boosts naira’s performances
Legit.ng reported that in November 2024, CBN issued a guideline for the interbank FX trading system operations through the EFEMS and pegged the minimum tradeable amount at $10,000 to prompt transparency and efficiency in the forex market.
The CBN approved Bloomberg BMatch as the authorised platform supporting EFEMS to facilitate interbank trading under this framework.
Mixed outlook for the naira in 2025
CBN disclosed that all market participants must adhere strictly to the guidelines and any future amendments issued by the relevant authorities.
The development comes amid several predictions for the naira in the new year, putting it at N1,800 and N2,000 per dollar, respectively.
Other experts disclosed that the naira will experience less volatility as food and petroleum products imports reduce in the coming weeks.
CBN explains $22.8bn inflow into the economy in 2024
Legit.ng earlier reported that Nigeria’s economy saw a 3.01% rise in foreign exchange inflows, hitting $22.89 billion in the third quarter of 2024 from $22.22 billion in the previous quarter.
The Central Bank of Nigeria (CBN) disclosed this in its latest economic report.
The report revealed that inflows via the CBN grew by 39.63%, reaching $11.86 billion from $8.49 billion in the second quarter of 2024, while autonomous sources saw a drop of 19.66% at $11.03 billion from $13.72 billion.
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Source: Legit.ng
