The Nigerian naira gained N126 against the dollar in less than a week, reaching N1,537 at the official market. The parallel market saw a peak of N1,530. This surge follows the Central Bank of Nigeria’s launch of the new Electronic Foreign Exchange Matching System (EFEMS) on December 2, 2024.
In less than a week, the Nigerian naira gained N126 against the US dollar, reaching N1,537 at the official market by Friday. This surge followed the Central Bank of Nigeria's (CBN) implementation of the new Electronic Foreign Exchange Matching System (EFEMS), introduced on December 2, 2024. The naira also rose to N1,530 in the parallel market, peaking at N1,580 by Sunday.
The EFEMS platform aims to resolve market inefficiencies by facilitating seamless trading among authorized dealers like commercial banks. It enhances transparency and price discovery by automatically matching buy and sell orders, providing regulators and market participants with real-time visibility. Omolara Duke, CBN's Financial Markets Department Director, called it a "game-changing" initiative.
Furthermore, Nigeria raised $2.02 billion in Eurobonds, oversubscribed by $9.01 billion, bolstering liquidity and supporting the naira’s gains. CBN Governor Olayemi Cardoso hailed EFEMS as a revolutionary step to improve market transparency and attract new investments.
While the naira’s recent gain was significant, market experts suggest that the currency must maintain momentum below the N1,500 threshold to avoid hitting resistance again. Despite fluctuations, analysts view the platform’s long-term benefits as a crucial part of Nigeria’s foreign exchange reforms.
