On Wednesday, the naira dropped for the second time since the launch of the EFEMS platform, with the dollar rising to ₦1,545.
The naira also hit a new low of ₦1,710 in the parallel market, driven by higher demand from importers and travellers.
On Wednesday, the naira fell against the dollar for the second time in the official market since the Central Bank of Nigeria (CBN) introduced the Electronic Foreign Exchange Matching System (EFEMS).
This depreciation resulted from increased demand for US dollars, which continued to put pressure on the currency.
By the close of trading, the naira had weakened by 1.3 per cent, or ₦20, with the dollar quoted at ₦1,545, up from ₦1,525 the previous day, according to CBN data.
In addition, authorised dealers quoted the dollar at ₦1,557, slightly stronger than Tuesday’s ₦1,560.
The market also recorded a lower bid of ₦1,515, down from ₦1,500, indicating ongoing fluctuations.
At the same time, the naira continued its decline on the parallel market, dropping to ₦1,710 per dollar, its lowest point since the EFEMS launch.
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This marked a third consecutive day of depreciation, raising concerns about the currency’s stability in the near future.
Traders Cite Increased Demand From Importers And Travellers For The Naira’s Decline
Traders attributed the renewed drop to rising demand from importers and individuals seeking dollars for travel and other expenses.
One trader explained, “The dollar had dropped earlier as people waited to see how the new system would unfold, but now buying and selling have resumed.”
In response to these developments, the EFEMS platform, which launched on December 2, 2024, aims to improve transparency and efficiency in Nigeria’s FX market.
The CBN issued guidelines, including a minimum tradable amount of $100,000, to ensure fair trading.
The CBN’s director of financial markets, Omolara Duke, stated that the platform would help minimise risks and enforce compliance with regulations.
Despite the initial optimism, the naira’s continued slide signals ongoing challenges in the market, with many closely monitoring the situation.
