The official exchange rate for the Naira against the US dollar has shown a slight improvement, with the Naira closing at ₦1509.45 per $1 on July 2, 2024, after opening at ₦1515.63 per $1 the previous day. Despite this, the black market rates remain high, with the Nigerian currency is trading at ₦1510 per Dollar, reflecting ongoing challenges in stabilizing the currency’s value.
In a significant move, the Central Bank of Nigeria (CBN) recently unified all segments of the foreign exchange market into the Investors and Exporters (I&E) window. This decision, announced in a circular dated June 14, 2023, aims to simplify forex transactions and improve transparency. The CBN reintroduced the “Willing Buyer, Willing Seller” model and abolished trading limits on oversold FX positions while maintaining zero limits on overbought positions. These changes are intended to allow the Naira to float more freely and align with market forces.
The apex bank emphasized that further guidance on these operational changes would be communicated to authorized dealers and the general public. The adjustments signal Nigeria’s shift towards a more flexible exchange rate system, potentially leading to a more stable and transparent forex market.
