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The Nigerian naira strengthens to ₦1,640 per dollar in the parallel market, reflecting positive trends amid ongoing reforms by the Central Bank of Nigeria (CBN). The CBN’s policy interventions, including the launch of EFEMS and the FX code, are expected to stabilize the currency and attract investment.

The Nigerian naira has gained ground in the parallel market, appreciating to ₦1,640 per dollar, up from ₦1,655 on January 29, 2025. This positive movement comes as a result of ongoing reforms by the Central Bank of Nigeria (CBN), including the introduction of the Electronic Foreign Exchange Matching System (EFEMS) and the upcoming FX code, set to launch by the end of January.

The CBN’s efforts have significantly impacted the market, with the official Nigerian Foreign Exchange Market (NFEM) rate also improving to ₦1,526.3 per dollar, up from ₦1,533.5. This has narrowed the margin between the parallel market and the official rate to ₦113.7, down from ₦121.5 earlier in the week.

CBN Governor Olayemi Cardoso emphasized the potential for investment opportunities created by the currency’s depreciation in the previous year, noting that the situation now presents a more competitive exchange rate for investors. Taiwo Oyedele, Chairman of Nigeria’s Fiscal Policy and Tax Committee, pointed out that the new FX code will enhance transparency and remove about $20 million from the market daily.

Market analysts believe that these reforms, along with a focus on stability, will continue to strengthen the naira and boost investor confidence in Nigeria’s foreign exchange market. This could mark a new phase of economic growth as the country moves toward a more stable currency environment.