Today, the exchange rate between the Naira and the US dollar showed significant fluctuations. According to the FMDQ Security Exchange, the Naira opened at ₦1488.21 per $1 on Friday, June 28, 2024, and closed at ₦1508.99 per $1 on Monday, July 1, 2024. However, the black market rate is even higher, with the Naira trading at ₦1,510 per Dollar, despite the Central Bank of Nigeria’s (CBN) efforts to unify all foreign exchange market segments.
The CBN announced on June 14, 2023, that all FX windows are now consolidated into the Investors and Exporters (I&E) window. This unification allows applications for medical expenses, school fees, and other personal travel allowances to be processed through deposit money banks. The new policy introduces a “Willing Buyer, Willing Seller” model, enabling eligible transactions to access foreign exchange through the I&E window and ensuring transparency and efficiency in the FX market.
The operational changes signify Nigeria’s move towards a free-floating exchange rate, where the Nigeria currency value is determined by market forces without central bank intervention. This shift aims to provide a more transparent and flexible exchange rate system, reflecting the true market value of the Naira. Further guidance on these changes will be communicated to authorized dealers and the general public in due course.
