There is renewed confidence at foreign exchange (forex) market with the naira rose against the dollar at the Nigerian autonomous foreign exchange market (NAFEM) ahead of Blomberg BMatch forex implementation. Spot forex data from the FMDQ platform revealed that the naira appreciated by 0.97 per cent, closing at N1,659.44 per dollar in the official market.
Traders noted that the exchange rate fluctuated between N1,661 and N1,705.00, ultimately closing at N1,659.44 per greenback. In a directive, the Central Bank of Nigeria (CBN) has told authorised deposit money banks to acquire necessary technology and resources to integrate with the Bloomberg BMatch system.
The directive followed the apex bank decision to implement automated foreign exchange trading to improve supply, transparency, and governance. The CBN said effective from December 2, all authorised dealers will go live in the use of Bloomberg BMatch as the electronic foreign exchange matching system (EFEMS) for its forex trading activities.
The CBN said the platform will enhance the integrity and operational efficiency of currency trading by providing transparent and automated matching trades. The authority expects this process to lead to market efficiency and greater price discovery.
The CBN policy committee expressed concerns about persisting exchange rate pressure reflecting increasing demand for dollars. Nigeria’s gross external reserves remained strong at more than $40.257 billion, based on the latest information on foreign exchange movement from the CBN.
The nation’s foreign reserves recorded four outflows since last week, when it peaked at $40.291 billion. In the global commodities market, oil prices declined as traders monitored OPEC+ talks regarding production and speculated on the effects of President-elect Donald Trump’s proposed trade tariffs on Mexico and Canada.