The Central Bank of Nigeria (CBN) announced revised foreign exchange rates, showing slight declines in the naira’s value against major currencies.
The naira depreciated against the pound sterling, closing at N2,035/£1, and also weakened slightly against the U.S. dollar at the official Nigerian Autonomous Foreign Exchange Market (NAFEM) window, settling at N1,579.22/$1.
However, the naira appreciated slightly against the euro, trading at N1,735.8/€1.
In the parallel market, the naira continued to trade at a higher rate, with the dollar selling at N1,595. Traders attributed these fluctuations to varying availability of foreign exchange.
To address growing concerns over naira volatility, the CBN reintroduced the Retail Dutch Auction System (rDAS) to provide liquidity and stabilize the market.
The reintroduction of rDAS aims to manage legitimate foreign exchange demand and stabilize the forex market amidst Nigeria’s broader economic challenges, including the impacts of currency devaluation.
The CBN’s measures will be closely monitored as the country seeks to balance currency stability with rising demand for foreign exchange.