In the parallel market, the naira was traded at N1,660 per dollar, showing ongoing demand, especially for foreign exchange used for fuel imports, tuition fees, and holiday spending. Analysts predict the naira will remain above the N1,500 per dollar mark through the holiday season.
The Central Bank of Nigeria’s new Bloomberg Match system, which started on December 2, 2024, has enhanced market transparency and price discovery, allowing for more effective interventions. These changes, along with Nigeria going back to the global bond market after two years, have made the naira stronger. The country raised $1.77 billion in its latest Eurobond issuance, providing short-term liquidity relief and improving investor confidence.
Meanwhile, the US dollar index, a key measure of the dollar strength against six other major currencies, reached a two-year high, consolidating around the 108 mark. This increase happened after the US Federal Reserve lowered its main interest rate by 0.25%, bringing it to a range of 4.25% to 4.50%.
