The Naira opened at ₦1549.50 per $1 on Friday, December 13, 2024, and closed at ₦1545.10 per $1 on Monday, December 16, 2024, according to FMDQ Security Exchange data. However, at the black market, the Dollar is trading as high as ₦1,660 despite the Central Bank of Nigeria’s (CBN) efforts to unify all forex market segments.
The CBN, in a June 2023 circular, abolished FX segmentation, merging all rates into the Investors and Exporters (I&E) window. It reintroduced the “Willing Buyer, Willing Seller” model and other operational changes, including transparent order books and unrestricted FX hedging for short positions. Government transactions are pegged to the weighted average rate from I&E trades.
These reforms signify a shift to a free-floating naira exchange rate, determined purely by market forces. This move is expected to bring more transparency to FX trading and allow market dynamics to guide the naira’s value.