The naira has ended its bullish run against the US dollar in the past week, trading mostly below the N1,500 ceilingThe naira closed trading on Monday at N1,495.70 per dollar in the official foreign exchange window, down from N1,479The development comes as the CBN extended the weekly sales of foreign exchange to Bureau de Change operators
Henzodaily.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
The Nigerian naira paused its week-long gain against the US dollar on Monday, February 3, 2025.
The naira has been bullish against the dollar in the past week, accelerating to N1,474.79 as of Friday, January 31, 2025.
The naira reverses gain against the dollar in the official FX market
Credit: Bloomberg/Contributor
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CBN policies boost the naira’s performance
Analysts say the gains recorded in the foreign exchange market were due to several policy changes introduced by the Central Bank of Nigeria to improve liquidity.
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CBN reduces Customs FX rates for cargo clearance as Naira surges against USD
The naira accelerated in gains rapidly following the CBN’s introduction of the FX Code to boost transparency and liquidity.
The apex bank introduced the Code, anchoring it on six strong pillars to allow fairness in the FX markets.
CBN warned banks and currency dealers of severe consequences if they violated the Code.
Analysts praise CBN’s action
“Introducing the Code proved to be a game-changer for the FX market despite the drought of interventions in the market by the CBN,” Janet Ogochukwu, economist and banker, said.
It aided the local currency regarding transparency and improved liquidity, resulting in massive gains for the naira,” she said.
She said the changes reflected massively in the FX market as the naira rose in value below the N1,500 ceiling.
The naira halts gain as CBN extends FX sales
However, the local currency paused its gain on Monday, February 3, 2025, closing trading at N1,495.60 per dollar from N1,474.79 recorded the previous day.
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Naira appreciates against dollar, exchange rate hits 7-month high
The naira opened trading in the official market positively at N1,482.50 before depreciating to the current value.
Data from the FMDQ Exchange shows that currency dealers quoted the naira at a high of N1,495 per dollar and a low of N1,470 in the official foreign exchange window.
Meanwhile, the CBN has extended access to Bureau de Change operators (BDCs) for purchasing FX from the Nigerian Foreign Exchange Market (NFEM) until May 30, 2025.
The CBN disclosed this on Monday, February 3, 2025. Under the current conditions, the operators can continue purchasing FX from authorised dealers.
According to reports, the previous circular allowed temporary access to existing BDCs to source FX from authorised dealers, with a weekly cap of $25,0000.
CBN reduces Customs FX rates for cargo clearance
Henzodaily.ng earlier reported that CBN has adjusted the Customs foreign exchange rate for cargo clearance in Nigeria’s sea and airports.
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Bureau de Change operators list reasons for naira’s recent appreciation over dollar
The apex bank crashed the rate to N1,477.75 per dollar, down from N1,500 last week.
Henzodaily.ng previously reported that CBN crashed the rates three times last week following the naira’s bullish run in the forex markets.
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Source: Henzodaily.ng