Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.

The Nigerian currency, the naira, closed flat in the official window and dropped slightly in the parallel market.

This development follows reduced demand and improved liquidity as the Central Bank of Nigeria (CBN) stretched FX access to Bureau de Change (BDC) operators.

The naira remained steady at N1,498 per dollar at the close of trading on Tuesday, February 4, 2025, at the Nigerian Foreign Exchange Market (NFEM), from N1,494.50 per dollar it traded the previous day.

According to FMDQ data, the naira opened trading at N1,496 and closed at N1,498 per dollar, representing a 0.22% drop relative to the N1,495 it closed the previous day.

Meanwhile, the naira dropped in value in the parallel market, closing at N1,600 per dollar on Tuesday, February 4, 2024.

A previous report by Legit.ng disclosed that the CBN extended access to Bureau de Change operators to purchase FX from NFEM to meet the retail market for invisible transactions.

The extension allows the operators to continue accessing the official market under the same conditions and terms set by the CBN.

The Association of Bureau de Change Operators of Nigeria (ABCON) has lauded CBN for extending the deadline for eligible dealers to access the official foreign exchange market.

ABCON President, Aminu Gwadabe, said the gesture aligns with the apex bank’s efforts to ensure continuity and stabilising the FX market.

CBN announced the deadline extension on Monday, February 3, 2025, allowing eligible operators to access the official window for forex transactions.

The News Agency of Nigeria (NAN) said the ABCON boss raised worries about banks not complying with CBN’s December 2024 notice, granting BDCs temporary access to the Nigerian Foreign Exchange Market (NFEM) to purchase $25,000 weekly from December 19, 2024, to January 30, 2025.

Gwadabe urged commercial banks to partner with CBN and BDC operators to implement the circular to ensure smooth operations.

According to Gwadabe, ABCON members received the news of CBN’s extension with glee, considering it part of the regulator’s efforts to ensure continuity and commitment to inclusiveness of the sub-sector in the official window.

Legit.ng earlier reported that the naira paused its week-long gain against the US dollar on Monday, February 3, 2025.

The naira has been bullish against the dollar in the past week, accelerating to N1,474.79 as of Friday, January 31, 2025.

Analysts say the gains recorded in the foreign exchange market were due to several policy changes introduced by the Central Bank of Nigeria to improve liquidity.

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Source: Legit.ng