The Naira continued to gain ground in the black market segment of the Nigerian Foreign Exchange Market as it traded at N1,645 per Dollar on Friday morning, according to secondary data.
The major increase in the market has been attributed to the launch of the Electronic Foreign Exchange Matching System (EFEMS), which has created ease and transparency at the country’s currency market.
The rise indicated a further N41 gain for the domestic currency compared to N1,686 per Dollar it traded on Thursday, December 5.
On the Central Bank of Nigeria (CBN) website, the Naira traded at N1,567 per Dollar, reflecting the minimum rate that it would auction FX to authorised dealers.
The EFEMS platform, which began operations this week, is expected to instantly reflect data on all FX transactions conducted in the interbank market and approved by the apex bank.
The implementation of the forex system comes with diverse implications for all segments of the financial markets that deal with FX, including an expected rebound in the value of the Naira across markets.
The apex bank also said it would publish real-time prices and buy-sell orders data from this system.
In the international market, the Dollar also cooled as markets currently see about a 72 percent chance that the US Federal Reserve will deliver a 25-basis-point rate cut when it meets on December 17-18.
The wider drop of the American currency, according to market analysts, will ease the pressure on other currencies such as the Nigerian Naira.