Today’s Dollar to Naira exchange rates highlight Nigeria’s evolving currency dynamics. Official data from the FMDQ Securities Exchange shows the Naira opened at ₦1,656.97 per dollar on October 31, closing at ₦1,666.72 on November 1. However, in the parallel market, the Naira trades significantly higher, reaching ₦1,750 per dollar. This disparity remains despite recent measures by the Central Bank of Nigeria (CBN) aimed at unifying Nigeria’s forex segments.
The CBN introduced several structural reforms in June 2023, consolidating all forex segments into the Investors and Exporters (I&E) window. This restructuring includes re-establishing the “Willing Buyer, Willing Seller” model and removing trading limits on oversold positions, all to foster transparency and liquidity. The CBN mandates that the official exchange rate for government transactions be based on the previous day’s weighted average rate from the I&E window, aiming to align with broader market conditions.
These changes indicate a shift towards a free-floating exchange rate, reducing regulatory intervention and allowing market forces to dictate the Naira’s value. Such a free-floating system enables exchange rates to adjust naturally according to demand and supply, marking a substantial step in Nigeria’s efforts to stabilize its currency and create a transparent FX market.