The naira ended the first trading week of 2025 flat in the official market as the pressure on the foreign exchange market eases.

The naira, which opened the year at the rate of N1,538.50 per dollar on January 2, 2025, closed the first trading week of the new year at N1,544.50, marking a slight depreciation of 0.4 percent at the Nigerian Foreign Exchange Market (NFEM), according to data from the Central Bank of Nigeria (CBN).

In the parallel market, popularly called the black market, the local currency ended the first trading week steady at between N1,660 and N1,650 to the dollar.

The naira has maintained relative stability since the introduction of the Electronic Foreign Exchange Matching System (EFEMS) by the CBN, which went live on December 2, 2024.

Between the last FX trading in 2024 and the first trading in 2025, the naira has recorded 0.6 percent or N9.5/$1 loss from N1,535 per dollar on December 31, 2024 to N1,544/$1 on January 10, 2025.

Authorised currency dealers quoted the dollar as high as N1,548 per dollar on Friday compared to N1,545/$1 on Thursday, January 2, 2025, the first trading day of this year.

The lowest rate steadied at N1,538 per dollar in the period under review.

The naira has witnessed a notable recovery, appreciating by N125 against the dollar within a month following the implementation of the EFEMS.

The naira’s recent stability comes after a turbulent year marked by significant instability. In 2024, the currency experienced a sharp depreciation, losing 40.9 percent of its value against the dollar in the official market, despite an increase in external reserves.

This decline underscored the persistent challenges facing Nigeria’s currency market amid efforts to stabilise the economy.

In a move aimed at tightening the management of foreign exchange, the CBN on Thursday announced that it would no longer approve requests for the extension of repatriation of export proceeds by Authorised dealers on behalf of their customers.

“This is a clear directive that aims to ensure prompt and efficient repatriation of export proceeds, which is vital for the stability of our foreign exchange market,” said an analyst.