Naira Gains Value on BMatch, Parallel Market Rate in Check
The Nigerian naira has continued to win this week against the US dollar dominance on an electronic trading platform—Bloomberg BMatch—introduced on Monday. With strong foreign currency liquidity and improved transparency, the exchange rate has gained for four consecutive trading sessions.
A slew of investment banking analysts that spoke with MarketForces Africa said it is a new dawn in the foreign currency market in terms of liquidity and transpency.
Nigeria’s foreign exchange market is now transparent and liquid enough. Analysts said the Central Bank of Nigeria leadership will be willing to ensure the naira finds its true value via the electronic platform.
Spot data from the FMDQ platform showed that the naira remained unchanged at N1,672.69 per US dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEM).
However, the local currency appreciated sharply by 1.6% to N1,607.05 per greenback in the Electronic Foreign Exchange Matching System (EFEMS). Investment analysts reported that traders were consummated between N1,550 and N1,638.64 on BMatch platform on Thursday.
The new trend in the forex market is in contrast to historical patterns. The yearend effects in the informal sector market continue to impact the exchange rate. FX inflows from Nigerians in diaspora have strongly reduced demand for invisible transactions.
According to channel check, the naira ended the day at N1,670 per US dollar in the parallel market today, gaining N20 on the day. Elsewhere, oil prices climbed after the Organisation of Petroleum Exporting Countries and allied producer members (OPEC+) decided to postpone increases in crude production.
Brent crude price settled at $72.77 per barrel, and US West Texas Intermedia (WTI) ended the day at $69.04. On the other hand, gold prices fell as U.S. Treasury yields strengthened following the release of weekly jobless claims data.
The market awaits U.S. non-farm payroll figures for new insights into the Federal Reserve’s approach to interest rate cuts. Gold is currently valued at about $2,640.85 per ouounce. aira Gains Value on BMatch, Parallel Market Rate in Check Paul Atkins: Global Crypto Market Cap Hits $3.71T as BTC Rally
