The Nigerian naira continued its strong performance, appreciating by N11 or 0.72% to close at N1,514/$1 at the parallel market on Wednesday, February 19, 2025.
This follows a sustained implementation of the Central Bank of Nigeria (CBN) forex policy by banks and Bureau de Change (BDC) operators.
According to data from the CBN, the naira remained stable at the official market EFEM market, closing at N1,510/$1 on Wednesday, February 19, 2025.
The intra-day high and low for the day were N1,513 and N1,507, respectively, while the weighted average rate was N1,510.
The President of the Association of Bureau de Change Operators of Nigeria (ABCON), Aminu Gwadebe, attributed naira’s appreciation to the CBN’s leadership strategy, non-renewal of banks’ US dollar swap, and increasing participation of banks in the sales of interbank proceeds to BDCs.
“The naira appreciation is phenomenal and exciting, and we, the Association of Bureaux de change operators of Nigeria and our members, heartily congratulate the apex bank and the fiscal authorities on this great achievement,” Gwadebe said.
He added:”The BDCs have so far demonstrated their effective and potent transmission mechanism of the Central Bank Foreign Exchange policies.”
Gwadebe also explained that the CBN’s inability to renew dollar swaps with banks has left the banks with huge forex liquidity, contributing to the naira’s appreciation.
Persecondnews recalls that the apex bank had revised its guidelines in December 2024, permitting licensed BDCs to purchase foreign exchange directly from authorized dealers.
The deadline for the weekly forex purchases was initially set for January 31, 2025, but was later extended to May 30, 2025, following appeals from BDC operators.
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