The Nigerian Naira experienced a notable appreciation against the US dollar in official trading on Wednesday.
The currency closed at N1,510.72 to $1, a gain of N11.96, or 0.78%, compared to Tuesday’s closing rate of N1,522.68. Data from the FMDQ Security Exchange, the official platform for forex trading, confirmed this positive movement.
Within the Investors and Exporters (I&E) forex window, trading fluctuated between a high of N1,514.00 and a low of N1,504.00 throughout the day.
This strengthening of the Naira builds upon a period of relative stability observed since December 2024. This period of steadiness followed the implementation of a series of sweeping reforms by the Central Bank of Nigeria (CBN).
The CBN has continued its efforts to bolster the local currency. The financial institution also introduced further measures on Tuesday in Abuja. Among the newly introduced initiatives are waivers on the 2025 annual license renewal fees for all existing Bureau De Change (BDC) operators.
This move is intended to ease the operational burden on these businesses. Furthermore, the CBN unveiled the Nigeria Foreign Exchange (FX) Code.
This code is a key component of the CBN’s ongoing reform efforts and is designed to instill greater transparency and ethical conduct within the banking industry, bringing practices in line with international standards.
Dr. Aminu Gwadabe, President of the Association of Bureau De Change Operators of Nigeria (ABCON), expressed his appreciation for the CBN’s recent actions. He also specifically highlighted the positive impact of the license fee waiver for BDC operators.
He emphasized the importance of collective support and adherence to the CBN’s ongoing reforms to ensure the continued stability of the Naira.
Gwadabe also lauded the introduction of the Nigeria FX Code, believing it will be instrumental in addressing persistent challenges in the forex market.
He pointed out that the code has the potential to mitigate issues such as a lack of transparency in transactions, destabilizing rate wars among market participants, and delays in the submission of required reports on spot transactions.
He anticipates that these measures will contribute to a more orderly and efficient foreign exchange market.
