Following the launch of the Electronic Foreign Exchange Matching System (EFEMS) by the Central Bank of Nigeria (CBN) to enhance transparency and efficiency in the FX market last week, the Naira appreciated sharply.
Official Market: Naira rose from ₦1,663/$ on Monday, 2nd of Dec, 2024, to ₦1,537/$ on Friday the 6th of December, 2024, a ₦126/$ gain.
Parallel Market: It peaked at ₦1,530/$ on Saturday, 7th of Dec. 2024, before settling at ₦1,580/$ on Sunday, 8th of December, 2024 in Lagos.
What EFEMS Does
EFEMS basically facilitates real-time matching of buy and sell orders, ensuring faster execution and transparency. Omolara Duke, CBN’s Financial Markets Director, called it a “game-changing tool for the foreign exchange market.”
Eurobond Boost
Raising $2.02 billion through oversubscribed Eurobonds, Nigeria was able to provide liquidity support for the Naira.
Market Outlook
For sustained gains, experts say the Naira must stay below ₦1,500/$ to avoid rising above ₦1,600/$ resistance.
CBN Governor Olayemi Cardoso described EFEMS as a “revolutionary step” toward exchange rate unification, which aims to rebuild trust and attract investments from both local and foreign investors.
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