In an apparent reaction to the official launch of the FX code by the Central Bank of Nigeria, the Nigerian currency, the naira, appreciated massively against the dollar at both the parallel and official foreign exchange markets on Tuesday, January 28, 2025.
Ripples Nigeria reports that the CBN, on Tuesday, January 28, 2025, officially launched the Nigeria Foreign Exchange (FX) Code, aimed at fostering transparency, ethical practices, and efficiency in the nation’s foreign exchange market.
Speaking during the launch in Abuja on Tuesday, the CBN governor, Mr Olayemi Cardoso, explained that the FX code sets clear and enforceable standards to address past malpractices and prevent a recurrence of systemic abuses that have undermined Nigeria’s foreign exchange ecosystem.
Reacting to this development, the naira appreciated at both markets.
According to FMDQ data, the naira strengthened to N1,522.28/$1 from N1,533.63/$1 traded on Monday, January 27, 2025.
This indicated a gain of N11.
Similarly, at the parallel market, the naira gained N10 against the dollar to trade at N1,640/$1 as against the previous rate of N1,650/$1.
The naira gained N5 against the British Pound to trade at N2,020/£1 as against the previous day’s rate of N2,025£1.
The naira continues to hold steady against the Canadian Dollar at N1,280/CA$1.
The naira gained N15 against the Euro to trade at ₦1,680/€1 as against the previous day’s rate of ₦1,695/€1.
By: Babajide Okeowo