Naira Firms Across Board As CBN Launches FX Code

Ahead of the plans to formally launch the Nigeria Foreign Exchange (FX) Code, the value of the naira firmed at the parallel market as well as the official window on Wednesday after opening the week on a depreciating note.

By the close of business yesterday, the Naira was selling at N1,660 to the dollar at the parallel market compared to N1,675 which it sold on Tuesday and firmer than N1,665 which it sold on Monday.

At the Central Bank of Nigeria (CBN) window, the value of the naira which closed weaker on Tuesday at N1,555 to the dollar on Tuesday firmed to N1,553 at the close of business on Wednesday. The gain was however not substantial enough to cover the depreciation it suffered since Monday.

Analysts note that the central bank has since the fourth quarter of last year prioritised the stabilisation of the naira. The currency has with the interventions of the apex bank among other factors seen some stability, hovering around the N1500 mark at the official end of the market.

According to the head of Financial Institutions at Agusto & Co, Ayokunle Olubunmi, the successful Eurobond and domestic USD bond issuance have provided foreign exchange supply to the CBN. Also, the gradual ramp up of domestic crude oil refining has also moderated the forex demand for importation, as refined petroleum products top the country’s import bill.

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Meanwhile, the CBN said it has approved the release of the Nigerian Foreign Exchange (FX) Code as a guideline to the banking industry to promote ethical conduct of Authorised Dealers in the Nigerian Foreign Exchange Market.

Set to be launched on Tuesday January 28, 2025, the Code is a new set of standards that seeks to transform conduct and practices within the country’s foreign exchange market.