Following the introduction of new reforms by the Central Bank of Nigeria (CBN), the naira yesterday appreciated by 0.97% at the parallel market, closing at N1,634/$1.
This came after the apex bank took significant steps to stabilize and improve the foreign exchange market in Nigeria, which have had an immediate positive impact on the naira’s value in both the parallel and official markets.
The naira had appreciated by 1.1% to N1,531.20/$1 at the weekend at the Nigerian Foreign Exchange Market (NFEM), following the CBN’s intervention, selling $113.85 million to authorized dealers.
However, compared to N1,650/$1 quoted across some markets in Lagos and Abuja on Monday, the naira gained N16 to close at an average rate of N1,634/$1 on Tuesday. Furthermore, the naira which had appreciated by 0.16% to close at N1,533.63/$1 on Monday, appreciated again by 0.7% to close at N1,522.68/$1
The CBN had issued a new Foreign Exchange (FX) Code aimed at enhancing market liquidity, transparency and guiding market participants in Nigeria’s foreign exchange sector. In the FX Code document, the CBN directed market participants to submit compliance reports on adherence to the code by January 31, 2025.
In another development, the apex bank announced the waiver of the non-refundable annual license renewal fee for 2025.
This development was disclosed in a circular dated January 24, 2025, and signed by John S. Onojah, acting director of the financial policy and regulation department.
The circular, addressed to all BDC operators and stakeholders in the financial services industry, highlights the CBN’s commitment to fostering stability, transparency, and efficiency in the foreign exchange market.
The waiver is part of the CBN’s broader strategy to support the ongoing transition to the new BDC regulatory structure, following the release of the “Regulatory and Supervisory Guidelines for Bureau De Change Operations in Nigeria, 2024.”
The circular states, “This is to inform all existing bureau de change that further to the regulatory and supervisory guidelines for Bureau De Change Operations in Nigeria, 2024, and the ongoing transition to the new BDC regulatory structure, the Central Bank of Nigeria has approved the waiver of 2025 licence renewal fee, effective immediately.”
These moves underscore the CBN’s commitment to fostering a more stable and transparent foreign exchange environment while providing relief to BDC operators as they adapt to regulatory updates