Nigeria’s currency has appreciated by N125 to a dollar one month after the launch of the Electronic Foreign Exchange Matching System (EFEMS).
Analysts say this may be an indication that the naira’s rebound journey has just started, noting that the local curerency will have a positive run in 2025.
According to the Central Bank of Nigeria (CBN), the naira strengthened by 8 percent as the dollar was quoted at N1, 535 on January 3, 2025, as against N1,660 traded on December 2, 2024, the official launch date of EFEMS trading, indicating a N125 gain over the period.
The introduction of EFEMS was first announced by the CBN on October 3, 2024, as part of a series of reforms aimed at addressing speculation and enhancing transparency in Nigeria’s foreign exchange market.
This system was specifically designed for authorised dealers operating within the Nigerian Foreign Exchange Market (NFEM) and became operational on December 2, 2024, after a successful two-week trial period conducted in November 2024.
