The official exchange rate for the Naira to the US Dollar opened at ₦1,548.40 per $1 earlier in the week and closed at ₦1,534.00 per $1 on Friday, December 27, 2024, according to data from the FMDQ Security Exchange. In contrast, the black market rate remains significantly higher, trading as high as ₦1,650 per $1.
This disparity persists despite the Central Bank of Nigeria’s (CBN) June 2023 move to unify all foreign exchange segments into the Investors and Exporters (I&E) window. The unified framework operates on a “willing buyer, willing seller” model, ensuring transparency and allowing eligible transactions to access foreign exchange at market-determined rates.
The CBN has also eased its control of the naira, allowing a free-floating exchange rate determined by market forces. These changes aim to increase market efficiency and promote transparency in Nigeria’s forex market, which continues to experience challenges amidst high demand and limited supply.
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