Naira strengthens to N1,635/$1 in parallel market as FX market shows signs of stability 

This marks a N15 gain against the greenback as market forces drive slight improvements in foreign exchange rates.

According to data from the Central Bank of Nigeria (CBN), the official exchange rate closed at N1,533.50/$1 on Monday, reflecting relative stability in the market.

This is coming a day after the CBN launched the Nigeria Foreign Exchange (FX) Code.

Based on Naijaonpoint research team’s data, here is an analysis of the changes in parallel market rates for the US Dollar (USD), British Pound (GBP), and Euro (EUR) from January 28 to January 29, 2025:

US Dollar (USD): 

British Pound (GBP) 

Euro (EUR): 

Data from the CBN website reveals that on Tuesday the currency traded N1526.3599/$1 (buying) and N1527.3599/$1 (selling).

Market analysts attribute the naira’s recent appreciation to increased forex inflows from remittances and improved liquidity within the banking system.

Some traders also speculate that the CBN’s recent intervention measures, including the sale of forex to Bureau de Change (BDC) operators, have contributed to easing pressure on the naira.

While the naira has gained slightly, forex market volatility remains a key concern, with traders keeping a close watch on policy adjustments from the CBN.

Economic factors such as oil revenue inflows, external reserves, and inflation trends will play a crucial role in determining the direction of the naira in the coming weeks.

Investors and businesses are advised to stay informed about the evolving forex landscape as the CBN continues its efforts to stabilize the exchange rate.

The Central Bank of Nigeria (CBN) launched the Nigeria Foreign Exchange (FX) Code in Abuja on Tuesday, aimed at promoting professionalism and ethical practices within the FX market.

In May 2024, the CBN introduced a recapitalization policy, which required Tier-1 BDC operators to increase their minimum capital requirement to ₦2 billion, while Tier-2 operators were mandated to meet a threshold of ₦500 million. This policy, according to the CBN, was designed to strengthen the financial health of the sector, curb illegal forex trading, and align the industry with international best practices.

In May 2024, the CBN introduced a recapitalization policy, which required Tier-1 BDC operators to increase their minimum capital requirement to ₦2 billion, while Tier-2 operators were mandated to meet a threshold of ₦500 million. This policy, according to the CBN, was designed to strengthen the financial health of the sector, curb illegal forex trading, and align the industry with international best practices.