The appreciation of the naira and the steady rise in Nigeria’s external reserves since the launch of the fourth edition of the Foreign Exchange Manual by the Central Bank of Nigeria (CBN) have attracted considerable attention across financial markets.
Within days of the June 1 implementation of the revised framework, the local currency strengthened across key foreign exchange market segments, while external reserves climbed to a record $50.04 billion, reinforcing confidence in the country’s foreign exchange management system.
At the official market, data published by the CBN showed that the naira appreciated by N5.74, closing at N1,361.05 to the dollar compared to N1,366.79 recorded earlier in the week. In the parallel market, the currency remained relatively stable at N1,385 per dollar.
While the movement of the exchange rate has generated positive headlines, policymakers, bankers, investors and businesses see the significance of the new Foreign Exchange Manual as extending far beyond short-term currency gains.
The revised framework represents a major attempt to reshape the architecture of Nigeria’s foreign exchange market, strengthen transparency, improve liquidity, support investor confidence and create a more predictable environment for economic activity.
