The naira appreciated to N1,514/$1 in the parallel market, gaining N11 from the previous day. This follows the Central Bank of Nigeria’s (CBN) forex policies, increased dollar liquidity, and non-renewal of banks’ dollar swaps. The official rate remains at N1,510/$1, narrowing the gap between both markets.
The Nigerian naira strengthened further in the parallel market, closing at N1,514/$1 on Wednesday, February 19, 2025. This marks an N11 increase from the previous day's N1,525/$1, reflecting the continued impact of the Central Bank of Nigeria's (CBN) forex policies and increased liquidity in the banking sector.
At the official market, the naira remained stable at N1,510/$1, unchanged from the previous day. Market data indicated an intra-day high of N1,513/$1 and a low of N1,507/$1, with a weighted average of N1,510/$1. The narrowing gap between the parallel and official rates suggests a more balanced foreign exchange environment.
Financial analysts attribute this trend to several factors, including the CBN’s decision not to renew dollar swaps with banks, leaving them with increased forex liquidity. The Association of Bureau De Change Operators of Nigeria (ABCON) also credited the appreciation to the rising participation of banks in interbank forex sales, aligning with the CBN’s broader efforts to stabilize the market.
ABCON President, Aminu Gwadebe, praised the regulatory body's approach, stating that it has boosted investor confidence and improved market transparency. He emphasized the commitment of BDC operators to ensuring compliance with CBN directives to sustain the currency’s recovery.
Meanwhile, in a move to enhance forex accessibility, the CBN recently extended the deadline for BDC operators to access the Nigerian Foreign Exchange Market (NFEM) for weekly FX purchases until May 30, 2025. This extension is expected to further support exchange rate stability.
