Naira Surges Against Major Currencies Amid CBN Reforms
The Naira has strengthened against several major currencies in the Nigerian Autonomous Foreign Exchange Market (NAFEM), according to data released on Tuesday, September 22. The local currency appreciated by 0.15% or N2.20 against the US Dollar to trade at N1,327.78/$1, compared to the previous day's rate of N1,329.80/$1.
In addition, the Naira gained against the Pound Sterling in the official FX window, rising by N6.69 to close at N1,774.31/£1, from Monday's rate of N1,781.00/£1. The domestic currency also strengthened against the Euro, increasing by N5.77 to finish at N1,521.37/€1.
However, the Naira weakened against the US Dollar at the GTBank forex counter by 50 Kobo to N1,337.50/$1 from N1,337/$1. The black market rate remained unchanged at N1,370/$1.
In a related development, Governor Yemi Cardoso of the Central Bank of Nigeria (CBN) stated that the FX market has become more transparent and liquid, with daily turnover sometimes exceeding $1 billion. He emphasized that the CBN will not target a predetermined exchange rate for the Naira, allowing its value to be determined by market conditions and underlying economic fundamentals.