Naira closes January at N1,475/$1 NAFEM price, strongest since June 2024 

The Nigerian Naira closed January 2025 at N1,475/$1 on the Nigerian Autonomous International Trade Market (NAFEM), marking its strongest efficiency since June 2024.

The Nigerian foreign money was formally exchanged for N1,473 to a greenback on June 11, 2024, the strongest till January 31, 2025.

This represents a major achieve from its closing price of N1,535/$1 on December 31, 2024, on the Nigerian Autonomous International Trade Market (NAFEM), indicating a N60 achieve or a 3.91% improve month-on-month.

All through the month of January, the Naira exchanged for round N1,560 and N1,506 to the greenback, apart from the final two days of the month when it exchanged for N1,493 to the greenback on January thirtieth earlier than additional gaining additional to shut at N1,475 on the ultimate day.

12 months-on-year breakdown  

12 months on 12 months, NAFEM closed at 1,455.59 to a greenback on the finish of January 2024, marking an approximate distinction of 1.33%, based on Nairametrics analysis.

Whereas the Naira’s modest achieve within the parallel market is a constructive signal, analysts warning that fluctuations stay, that is doubtless on account of exterior components reminiscent of oil costs, remittance inflows, and investor sentiment towards Nigeria’s financial system.

The overseas change market continues to expertise volatility, and additional interventions at intervals from the Central Bank of Nigeria (CBN) could also be crucial to make sure sustained stability.

What you must know 

• The CBN has been implementing a number of foreign exchange interventions and coverage measures geared toward stabilizing the Naira, together with tightening rules on Bureau De Change operators and growing greenback liquidity within the official market.
• Earlier this week, CBN Governor Olayemi Cardoso introduced that any violation of the newly launched Nigeria International Trade (FX) Code would appeal to extreme penalties. He affirmed the Central Bank’s resolve to implement moral conduct and transparency within the overseas change market.
• Analysts say the FX Code is a landmark initiative by the CBN, establishing clear and enforceable requirements for moral conduct, governance, and compliance in Nigeria’s overseas change market.

“The FX Code marks a brand new period of compliance and accountability. It’s not only a set of suggestions; that is an enforceable framework. Beneath CBN Act 2007 and BOFIA Act 2020, violations might be met with penalties and administrative actions,” Cardoso stated. 

Additionally final week, the Central Bank of Nigeria (CBN) introduced the waiver of the 2025 non-refundable annual license renewal payment for Bureau De Change (BDC) operators.

In a round signed by John S. Onojah, the performing director of the Monetary Coverage and Regulation Division, the CBN acknowledged that the transfer goals to ease the monetary obligations of BDC operators.

The round, addressed to all BDC operators and stakeholders within the monetary companies trade, underscores CBN’s dedication to fostering stability, transparency, and effectivity within the overseas change market.

This waiver is a part of the CBN’s broader technique to assist the continued transition to the brand new BDC regulatory construction, following the discharge of the “Regulatory and Supervisory Pointers for Bureau De Change Operations in Nigeria, 2024.”