The Nigerian foreign exchange (FX) market remained stable on Monday, with the naira sustaining gains attributed to recent policy interventions by the Central Bank of Nigeria (CBN).
Data from the Financial Markets Dealers Quotations (FMDQ) showed that the naira appreciated by 1.10 per cent, trading at N1,419.86 against the dollar compared to N1,435.53 on Friday at the Nigerian Autonomous Foreign Exchange Market (NAFEM).
This marks the third consecutive gain for the local currency following a series of FX policy adjustments initiated by the CBN last week.
The CBN’s efforts seem to be yielding positive results, as dollar liquidity remained stable, with the daily FX market turnover maintaining at $440.13 million on Monday, unchanged from Friday’s figures.
At the parallel market, commonly referred to as the black market, the naira also recorded a slight appreciation of 0.14 percent, with the dollar trading at N1,438 compared to N1,440 on Friday.
In an exclusive interview with Arise Television, CBN Governor Olayemi Cardoso outlined the central bank’s commitment to addressing liquidity shortages and market volatility through transparency and policy reforms.
Cardoso highlighted initiatives aimed at enhancing market integrity and narrowing the gap between official and unofficial FX markets. He clarified the CBN’s position on domiciliary accounts, emphasizing no plans for conversion to Naira to maintain market stability.
Additionally, Cardoso disclosed measures to address FX backlogs, including engaging Deloitte for a forensic audit to scrutinize claims. He noted discrepancies amounting to $2.4 billion, which do not qualify for settlement.
The CBN Governor also praised recent directives for revenue remittance to the CBN, citing their positive impact on investor confidence. He expressed confidence in policy measures endorsed by international stakeholders to stabilize the currency.
Razia Khan, Managing Director and Chief Economist for Africa and the Middle East at Standard Chartered Bank, lauded the market-driven approach, highlighting the absence of USD subsidies and the importance of market discovery.
The ongoing stability in the FX market reflects growing confidence in the CBN’s policies, signaling positive prospects for Nigeria’s economic outlook.