Within one week of their implementation, the current FX reforms at the Central Bank of Nigeria (CBN) led to a significant change in how currency rates are managed.
Feedback indicates that the official and parallel market rates will soon converge, and that foreign capital is now flowing into Nigeria more effectively to support the naira.
The CBN stated that the goal of the policy modifications is to encourage transparency, liquidity, and price discovery in the foreign exchange market.
The ongoing FX market reforms, according to JP Morgan, an American multinational financial services company, will cause the naira to strengthen and trade at roughly N600/$1 in the upcoming months.
On Monday, the naira was trading at N757/$1 in the parallel market, compared to N770.38/$1 in the Investors and Exporters (I&E) window.