The Nigerian naira appreciated to N1,644 per US dollar on the Bloomberg BMatch system, an electronic foreign exchange (FX) platform introduced by the Central Bank of Nigeria (CBN) for authorized currency dealers. Despite this gain, the naira remained steady in the autonomous foreign exchange market, maintaining stability in trading.
A Shift in FX Market Dynamics
The adoption of the Bloomberg BMatch system on Monday has altered the narrative surrounding Nigeria’s forex market. The naira’s recent volatility appears to be easing, with the parallel market exchange rate dropping below N1,700 per dollar for the first time in months.
According to data from the FMDQ platform, the naira held stable at N1,672.69 in the autonomous FX market. On the Electronic Foreign Exchange Matching System (EFEMS), however, it appreciated by 0.7% to N1,644 per dollar. Transactions on the interbank EFEMS platform occurred within a range of N1,570 to N1,675.43 before settling at the final rate of N1,644.
Analysts’ Mixed Reactions
Market analysts shared varying opinions on the naira’s recent performance. Some attributed the improvement to enhanced FX liquidity, while others highlighted the impact of increased transparency under the electronic trading system.
“Transparency and strong dollar volumes on the BMatch platform will continue to reveal the naira’s true value,” analysts told MarketForces Africa. They noted that the system’s structure minimizes the possibility of ineligible bids or questionable transactions.
A key factor behind this development is the CBN’s push for greater oversight of FX trading activities, particularly since Yemi Cardoso assumed office as the central bank governor. “The CBN’s recent measures reflect a lack of trust in authorized dealer banks and aim to ensure more transparent forex trading,” analysts added.
Parallel Market Gains
In the parallel market, the naira also showed significant strength, gaining N20 in a single day to close at N1,690 per dollar. Critics, however, have accused Nigerian banks of manipulating the naira to maximize profits.
Oil and Gold Markets
Meanwhile, global markets saw oil prices rise slightly as traders anticipated further supply cuts from OPEC+. Brent crude climbed to $74 per barrel, while West Texas Intermediate (WTI) was priced at $70.26 per barrel.
Gold prices surged, reaching $2,654.47 per ounce, driven by a moderate increase in U.S. private payrolls and speculation about Federal Reserve Chair Jerome Powell’s upcoming comments. Investors are also awaiting the release of Friday’s non-farm payrolls report for further market cues.
The naira’s recent appreciation highlights a gradual stabilization in Nigeria’s forex market, with transparency and improved liquidity playing central roles. As global economic factors, such as oil and gold prices, continue to influence sentiment, stakeholders will watch closely for sustained progress in the local FX landscape.
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