Naira Rises to N1,510 as CBN FX Code Boosts Market Confidence
The naira appreciated to N1510 per US dollar in the foreign exchange market as analysts claimed that the Central Bank of Nigeria’s (CBN) FX code would boost foreign investors’ confidence further.
Spot data showed that the naira appreciated by 0.79% in the official window, closing at N1,510.72 per US dollar as the CBN introduced code as part of FX reform to enhance transparency.
AIICO Capital Limited noted improved liquidity in the foreign exchange market, with substantial trades conducted on Wednesday without changing the naira course. Most transactions were valued between N1,495 and N1,532 per US dollar, analysts said.
In a chat with MarketForces Africa, a slew of financial experts and analysts agreed that the latest FX code introduced to the market to guide activities of authorised dealer banks would increase foreign investors’ confidence and lead to improved US dollar liquidity in the market.
The Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, launched the Nigeria Foreign Exchange Code (FX Code), aimed at sanitising market practices and entrenching good governance yesterday.
The CBN governor said the code was a decisive step forward, setting clear and enforceable standards for ethical conduct, transparency, and good governance in the FX market, adding that violations will be met with penalties and administrative actions.
He stressed that exchange rate stability remained a cornerstone of macroeconomic health for the Nigerian economy, influencing critical indicators such as the balance of payments, external reserves, international trade, inflation, economic growth, and foreign investment.
“Let me reiterate: the era of opaque practices is over,” Cardoso declared. “We will not hesitate to act against any institution or individual that undermines the integrity of our financial markets,” he said.
Cardoso disclosed that the forensic verification of $7 billion in FX backlogs, a process that has taken over 12 months, is nearing completion. He noted that the verification exercise revealed multiple unethical and illegal practices that the CBN is determined to prevent in the future.
He assured stakeholders that final settlements for the backlogs will soon be processed, marking a critical step in addressing past distortions in the FX market. The apex bank governor said, “We must not forget where we are coming from. The era of multiple exchange rates, which created privileges for a select few at the expense of most Nigerians, severely undermined market integrity.
In the global commodities market, oil prices experienced a slight decline due to an increase in U.S. crude inventories and diminishing concerns regarding supply disruptions from Libya. Additionally, attention is drawn to U.S. tariffs on imports from Canada and Mexico.
As of the latest figures, Brent crude was valued at about $77.05 per barrel, while West Texas Intermediate (WTI) was reported at around $73.36. In the precious metals market, gold prices remained stable as investors closely monitored the upcoming decision by the U.S. Federal Reserve regarding interest rates, as well as President Donald Trump’s trade policies following his recent tariff announcements, with gold trading at roughly $2,758.49 per ounce.
Oil markets are anticipated to stay unstable, and it will take time to gain a clear understanding of how U.S. policies on tariffs and sanctions will impact them. #Naira Rises to N1,510 as CBN FX Code Boosts Market Confidence BEDC Builds New 33kv Feeder Line to Improve Power Supply in Edo
