The naira strengthened significantly against the dollar, gaining N137 within a week following the Central Bank of Nigeria’s (CBN) introduction of a new foreign exchange (FX) trading platform. Official data revealed the exchange rate improved from N1,672.69/$ on November 29 to N1,535/$ on December 6, marking an 8.24% appreciation. The platform has enhanced transparency and liquidity in the FX market, narrowing the gap between official and parallel rates. Members of the Organised Private Sector (OPS) commended the gains but urged the government to sustain this progress for long-term economic benefits.
The CBN’s Bloomberg BMatch platform introduced automated trade matching, boosting confidence in FX operations. The naira’s rise was further supported by increased dollar liquidity, bolstered by Nigeria’s recent $2.02 billion Eurobond sale. Analysts highlighted the role of higher reserves, currently exceeding $40 billion, in enabling market stability and drawing foreign investment. Despite these advances, experts like Dr. Muda Yusuf emphasized the importance of fiscal discipline, urging reduced deficits, controlled debt, and efficient government spending to sustain the naira’s momentum.
Private sector leaders, including the Nigeria Employers’ Consultative Association, lauded the naira’s gains, citing relief for businesses dependent on foreign exchange for imports. They called for enhanced crude oil production, non-oil exports, and domestic refining capacity to stabilize FX inflows. A strategic focus on made-in-Nigeria goods and judicious forex allocation was also recommended. While the outlook is optimistic, sustaining this progress will require coordinated monetary and fiscal measures to maintain stability in the FX market.
