Naira Surges To N1,510 As New CBN FX Rules Boost Investor Morale

Federation Account Amasses Over ₦5trn In 6months- RMAFC

The Nigerian naira has gained strength, reaching N1,510 per US dollar in the foreign exchange market. Experts believe that the Central Bank of Nigeria’s (CBN) newly introduced foreign exchange (FX) code is increasing trust among foreign investors.

According to official data, the naira improved by 0.79%, closing at N1,510.72 per US dollar. This follows the CBN’s introduction of a new FX code aimed at making currency transactions more transparent.

AIICO Capital Limited noted that the foreign exchange market is seeing better liquidity, meaning there is more availability of dollars for trade. Transactions on Wednesday took place within the range of N1,495 to N1,532 per US dollar.

Financial experts speaking to MarketForces Africa agree that the FX code, which guides how banks handle foreign exchange transactions, will encourage more foreign investors to bring dollars into Nigeria, ultimately improving liquidity.

CBN Governor Olayemi Cardoso formally launched the Nigeria Foreign Exchange Code, designed to improve transparency and good governance in the currency market. He emphasized that the new rules set clear standards for ethical behavior and that violations will be punished.

He also highlighted that maintaining a stable exchange rate is crucial for Nigeria’s economy, as it affects trade, inflation, economic growth, and foreign investments.

“The days of secretive deals are over,” Cardoso stated. “We will take action against any individual or institution that tries to manipulate the financial market.”

He also revealed that the CBN’s review of $7 billion in overdue FX transactions is almost complete. This review, which has taken over a year, uncovered various unethical and illegal practices that the CBN is determined to stop going forward.

Cardoso reassured stakeholders that the final payments to settle these backlogs will soon be processed, marking a crucial step in fixing past issues in the foreign exchange market. He also stressed that Nigeria has moved away from the previous system of multiple exchange rates, which allowed a few privileged individuals to benefit while disadvantaging most Nigerians.

Meanwhile, oil prices dipped slightly due to rising U.S. crude oil inventories and reduced fears about supply disruptions from Libya. There is also growing attention on U.S. tariff policies affecting trade with Canada and Mexico.

Currently, Brent crude oil is trading at about $77.05 per barrel, while West Texas Intermediate (WTI) is around $73.36. In the precious metals market, gold prices remain stable at approximately $2,758.49 per ounce as investors await the U.S. Federal Reserve’s decision on interest rates and assess the impact of recent U.S. tariff announcements.