The Nigerian naira gained momentum on Thursday, appreciating by 0.60% following a significant surge in dollar supply within the official foreign exchange market.
According to data from the FMDQ Exchange, the naira closed at N1,659.26 per US dollar, an improvement from the previous day’s close of N1,669.15.
This follows a significant 8.25% depreciation on Wednesday when the currency closed at N1,669.15, down from N1,541 recorded at the end of September.
Despite the brief respite, the naira continues to face pressure due to ongoing market challenges.
Speaking after the Central Bank of Nigeria’s (CBN) 297th Monetary Policy Committee meeting in Abuja, Governor Yemi Cardoso acknowledged that the bank is focused on unlocking diversified foreign exchange sources.
However, he emphasised that the country’s dependence on a monolithic economy remains a fundamental barrier to achieving a stable exchange rate.
Cardoso also highlighted the potential impact of the Dangote Refinery on Nigeria’s economy.
He stated that the refinery’s output could alleviate some of the foreign exchange pressures by reducing the nation’s reliance on imported petrol.
In a related development, the CBN announced the upcoming introduction of an Electronic Foreign Exchange Matching System (EFEMS), designed to enhance transparency and drive a market-driven exchange rate.
The system is set to go live on December 1, 2024, following a two-week test run in November.
According to the CBN, the EFEMS will require all authorised dealers to conduct FX transactions on the platform, with the system providing real-time data on exchange rates and buy/sell orders.
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