The Naira continues to face turbulence as the exchange rate against the U.S. dollar remains volatile. According to data from the FMDQ Security Exchange, the official forex market saw the Naira open at ₦1,496.30 per $1 on Monday, February 3, 2025, before closing at ₦1,498.95 per $1 on Tuesday, February 4, 2025. However, in the parallel market, the Naira is trading as high as ₦1,620 per dollar despite the Central Bank of Nigeria’s (CBN) policy on forex unification.
The CBN had, in June 2023, announced the unification of all forex market segments, collapsing them into the Investors & Exporters (I&E) window. This move was aimed at enhancing transparency and efficiency in forex transactions. The apex bank reintroduced the “Willing Buyer, Willing Seller” model, allowing market forces to determine exchange rates while retaining official oversight for critical transactions like medicals, school fees, and business travel.
With the Naira’s depreciation in both official and black markets, Nigeria is experiencing the effects of a more flexible exchange rate system. A free-floating exchange rate means the value of the Naira is now largely dictated by market demand and supply, with minimal intervention from the central bank. As economic factors and forex liquidity shape the currency’s trajectory, businesses and individuals must navigate this evolving landscape with informed financial strategies.