Today, January 22, 2025, the Dollar to Naira exchange rates reflect the evolving dynamics of Nigeria’s foreign exchange market. According to FMDQ Security Exchange data, the Naira opened at ₦1554.11 per $1 on Monday, January 20, and strengthened slightly to close at ₦1552.78 per $1 on Tuesday, January 21, 2025. However, in the black market, the Dollar trades as high as ₦1,667, showcasing a sharp divergence despite the Central Bank of Nigeria’s (CBN) unification of forex segments.
In June 2023, the CBN introduced sweeping reforms, merging all FX windows into the Investors & Exporters (I&E) window. This shift reintroduced the “Willing Buyer, Willing Seller” model, order-based quotes, and transparent operations for transactions such as medicals, school fees, and business travel. These measures aim to enhance market efficiency, with government-related transactions pegged to the I&E window’s daily weighted average rate.
By allowing the Naira to float freely, the government has empowered market forces to dictate exchange rates, marking a significant policy shift. While this approach fosters transparency, the widening gap between official and black-market rates signals ongoing challenges. Businesses and individuals must navigate these changes carefully to thrive in this fluid economic environment.
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