The Naira has strengthened to N1,485.95 per dollar, marking its highest level in seven months, following key policies introduced by the Central Bank of Nigeria (CBN). The currency appreciated by 1.67% in the official market, gaining N24.8 from N1,510.72 on Wednesday. However, in the parallel market, the Naira slightly weakened to N1,635 per dollar from N1,625 the previous day.
This improvement is largely attributed to the CBN’s new Foreign Exchange (FX) Code, designed to enhance market transparency, stability, and confidence. The policy seeks to regulate forex transactions and prevent market manipulations. Market dealers quoted the dollar at rates between N1,470 and N1,516, reflecting increased liquidity and controlled volatility.
To ensure compliance, the CBN has mandated financial institutions to conduct a self-assessment and submit a report by January 31, 2025. Institutions must also present an implementation plan approved by their board of directors. The FX Code, backed by the CBN Act of 2007 and BOFIA 2020, serves as a guideline for maintaining order in Nigeria’s forex market.
