The naira’s strong performance has continued as the local currency appreciated again to close at N1514/$1 at the parallel market on Wednesday, February 19, 2025.
This represents an N11 or 0.72% gain when compared to the N1525/$1 that was recorded on Tuesday, February 18, 2025, as the sustained implementation of the Central Bank of Nigeria (CBN) forex policy by banks and Bureau De Change (BDC) operators impacts the market.
Local currency remains stable at the official market
Available data from the CBN shows that the naira remained stable at the official market EFEM market to close at N1,510/$1 on Wednesday, February 19, 2025. This was the same rate that was recorded on Tuesday, February 18, 2025
The strengthening of the naira in the parallel market has been linked to the resilient and transformative leadership strategy of the CBN, the non-renewal of banks’ US dollar swap, and the increasing number of participating banks in the sales of interbank proceeds to BDCs.
- 1. This was made known by the President Association of Bureau De Change Operators of Nigeria (ABCON), Aminu Gwadebe, during a chat with Nairametrics, where he congratulated the CBN and the fiscal authorities for this achievement.
- 2. He said that the BDC operators have so far demonstrated their effective and potent transmission mechanism of the CBN policies.
Gwadebe said, ‘’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.
‘’This development is linked to the resilient and transformative leadership strategy of the apex bank, non-renewal of Banks USD swap with the apex bank, and the increasing number of participating banks in the sales of interbank proceeds to BDCs.
‘’The BDCs have so far demonstrated their effective and potent transmission mechanism of the Central Bank Foreign Exchange policies.
‘’Finally, we are assuring the CBN Governor on our commitment to his vision of Diversity in collaboration as this has enhanced market transparency, investors’ confidence, release of timely information, accretion of Buffers and positive market perception.’’
Going further, the ABCON boss said the CBN has been unable to renew dollar swaps with banks, and so leaves the banks with huge forex liquidity.
He said, ‘’The banks do dollar swap with the apex banks in terms of deposit, and the CBN did not renew such transactions for banks dollar swap and therefore leave the banks with huge dollar liquidity.’’
