Following a brief gain last week, the naira plummeted on the parallel market yesterday as speculators’ actions further devalued the currency to N1630/$1.
Since the Central Bank of Nigeria (CBN) switched to the Enhanced Foreign Exchange Market System (EFEMS) platform last week, the naira has gained value four days in a row.
Though it showed a consistent increase in the Nigerian Autonomous Foreign Exchange Market (NAFEM), the gains have been undermined since the market started this week, with the naira rapidly declining at the parallel market.
According to Guardian, the CBN implemented EFEMS to increase the forex market’s efficiency and transparency in Nigeria. In order to guarantee that daily exchange rates are open and visible to the public, the platform mandates that all foreign exchange transactions be priced through the system.
