WATCH THE VIDEO HERE The naira recorded a huge gain against the US dollar at the parallel market, hitting N1640/$1, at the close of business on Wednesday, December 4, 2024. This represents a 5.2% or N90 gain against the dollar when compared to the N1730 that was recorded the previous trading day. The massive appreciation recorded against the dollar is coming with the kick-off of trading activities at EFEMS PLATFORM which the BDCs operators believe will bring about transparency in the forex market and enhance regulatory oversight. According to information made available to Naijaonpoint, the exchange rate for dollar inflow is N1640/$1, while the rate for cash transactions closed at N1664/$1 at the end of the day’s trading activities. The newly introduced Enhanced Foreign Exchange Market System (EFEMS) by the Central Bank of Nigeria (CBN) recorded a remarkable first and second day of trading as supply reportedly outstripped demand. Despite the positive signs shown on the first two days of trading, experts suggest that sustaining this momentum will require robust policy backing and an unwavering commitment to supply-demand balance. The success of this initiative depends largely on the CBN’s ability to maintain liquidity and curb market distortions, particularly speculative trading that has historically plagued Nigeria’s forex markets. The Central Bank of Nigeria (CBN) released revised guidelines for the Nigeria Foreign Exchange Market (NFEM), signaling a major shake-up in the country’s FX operations. The platform replaces the fragmented system of multiple windows, such as the Investors & Exporters (I&E) FX Window, SME Window, and Invisible Window.
Naira appreciates to N1,640 from N1,730 on parallel market as supply outstrips demand on CBN EFEMS
