The naira is currently trading at N1,475/$, its highest level this year, while at the official window it is trading at N1,460 to the dollar. A greater alignment between the two markets is shown in this reducing differential, which observers say highlights the effects of the Central Bank of Nigeria’s reforms.
Market confidence is increasing as external reserves reach $43.05 billion. Nigeria’s foreign exchange market is changing as a result of the CBN’s reforms, which include the implementation of the FX Code, the Electronic Foreign Exchange Matching System, and exchange rate uniformity. Stronger demand for the local currency, a decline in speculative activity, and a notable increase in external reserves have all been cited as reasons for the naira’s climb.
