The Nigerian naira has reached its highest value in the unofficial market this year, driven by improved market conditions and ongoing reforms implemented by the Central Bank of Nigeria. On Tuesday morning, the naira was quoted at a buying price of N1,520 per dollar in Nigeria’s commercial hub.
This price movement reflects a surge in activity within the Nigerian stock market, despite a decline in Treasury bill yields and enhanced incentives for investments denominated in naira. Furthermore, the Central Bank of Nigeria’s foreign exchange sales to Bureau De Change operators, coinciding with a decrease in foreign exchange demand, have provided sufficient support for the naira to surpass the N1,500 per dollar threshold.
Currently, the Nigerian currency is enjoying an unusual phase of stability, a year after experiencing a significant depreciation against the dollar. Since the relaxation of foreign exchange controls in 2023, the naira has lost 70% of its value relative to the US dollar.
In response, the Central Bank has implemented various foreign exchange interventions and policy initiatives aimed at strengthening the naira, including stricter regulations for Bureau De Change operators and enhancing dollar liquidity in the official market.
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CBN Governor Olayemi Cardoso has warned that any breaches of the newly established Nigeria Foreign Exchange (FX) Code will result in severe penalties. He reiterated the Central Bank’s dedication to maintaining ethical standards and transparency within Nigeria’s foreign exchange market.
