The Dollar to Naira exchange rate remains a focal point in Nigeria’s financial landscape. As of today, December 29, 2024, the Naira opened at ₦1548.40 per $1 earlier in the week on Tuesday, December 24, and closed at ₦1534.00 per $1 on Friday, December 27, according to data from the FMDQ Security Exchange.
However, on the parallel (black) market, the Naira is trading at a significantly higher rate of ₦1,650 per Dollar, highlighting a wide gap between official and unofficial exchange rates. This disparity persists despite the Central Bank of Nigeria’s (CBN) announcement of a unified forex market through its June 2023 circular, collapsing all FX segments into the Investors and Exporters (I&E) window.
The unification strategy has transitioned Nigeria to a free-floating exchange rate system, where market forces predominantly determine the Naira’s value. While this reform aims to enhance transparency and attract foreign investment, it has yet to stabilize the exchange rate across various platforms.