The naira continued its rapid appreciation against the dollar on the official EFEM market, closing at N1,535/$1 on Friday, December 6, 2024. This marks a significant gain after three consecutive days of growth since the Central Bank of Nigeria (CBN) introduced the Enhanced Foreign Exchange Market System (EFEMS).
On the trading day, the intra-day high reached N1,575, while the low was N1,510, with an average rate of N1,533. In the black market, rates dropped sharply to as low as N1,570/$1, with more sellers than buyers. Some sellers reported offloading dollars for as low as N1,500/$1, and certain cryptocurrency platforms exchanged stablecoins for the naira below N1,500/$1 via P2P platforms.
The naira’s performance at N1,535/$1 represents one of its best in recent months, improving from N1,567/$1 the previous day, highlighting rising demand for the naira. The gap between official and black market rates has now narrowed to less than N35, or approximately 2.3%.
Investment platforms like Bamboo and Trove quoted exchange rates at N1,549.50 and N1,629.49, respectively, showing a slight lag compared to official and parallel markets.
The increasing strength of the naira on both official and parallel markets signals growing confidence and a shift away from dollar hoarding, reflecting reduced speculative activity.
EFEMS Enhances Forex Market Transparency
The introduction of EFEMS is boosting transparency and efficiency in Nigeria’s forex market by consolidating all transactions into a single platform. This system has been key in reducing speculative behavior and increasing trust in the naira’s stability.
