The Nigerian naira saw a significant appreciation against the US dollar on December 4, 2024, closing at N1640/$1 at the parallel market, marking a 5.2% gain or N90 increase compared to the previous day’s rate of N1730. This surge follows the launch of the Enhanced Foreign Exchange Market System (EFEMS) by the Central Bank of Nigeria (CBN), a move aimed at bringing greater transparency and regulatory oversight to the country’s forex market.
According to market sources, the EFEMS trading platform recorded strong early trading volumes, with supply outpacing demand. The newly introduced platform is designed to consolidate Nigeria’s forex markets, replacing the Investors and Exporters (I&E) window, and is expected to simplify the system while enhancing market efficiency.
On the official market, the exchange rate closed at N1,595/$1, with the CBN website reporting N1613.69/$1 for the NFEM Simple Average rate. Experts remain cautiously optimistic about the platform’s potential, noting that maintaining liquidity and preventing market distortions will be crucial for sustaining the positive momentum.
The move to EFEMS comes after the CBN issued new guidelines aimed at streamlining the forex market and enhancing compliance and transparency. The platform is now the central hub for all foreign exchange transactions, replacing several previous windows, including the SME and Invisible windows.
