The Nigerian naira showed resilience in the foreign exchange market on February 4, 2025, stabilizing at N1,499/$ at the Nigerian Foreign Exchange Market (NFEM), according to data from the Central Bank of Nigeria (CBN). This stabilization comes after a period of fluctuating rates, signalling cautious optimism for currency watchers.
On February 3, 2025, authorized dealers quoted the dollar at N1,502/$, slightly above the N1,500/$ level seen earlier. While the naira briefly traded at N1,494/$, marking a dip from Monday’s N1,480/$, market sentiment remained steady.
FMDQ Securities Exchange reported a 0.22% decline in closing rates, with the naira settling at N1,498.95/$ on February 4, compared to N1,495.60/$ on February 3.
In the parallel market, the naira maintained its strength, averaging N1,600/$, with street traders offering rates between N1,595 and N1,605/$. Despite fluctuations in the official market, the parallel market remains a key source of forex for many Nigerians.
CBN Extends BDC Access to Forex
In a bid to improve forex liquidity, the Central Bank of Nigeria (CBN) has extended access to foreign exchange for Bureau De Change operators (BDCs) until May 30, 2025. Under this extension, BDCs can continue purchasing up to $25,000 weekly on existing terms, which is expected to boost liquidity and enhance retail transactions.
This move is a significant step toward ensuring broader access to foreign currency for small-scale businesses and retail users. The extension underscores the CBN’s commitment to stabilizing the forex market while addressing the growing demand for foreign currency.
Conclusion
The naira’s recent performance reflects both resilience and the impact of ongoing forex policies aimed at stabilizing the market. As we move closer to May 2025, the extended access for BDCs could play a critical role in maintaining this stability. Keeping an eye on both official and parallel market rates will be crucial for individuals and businesses involved in foreign currency transactions.
Interesting..