Today, the official exchange rate for the dollar to the naira sits at ₦1630.45 per dollar, following market activity on October 30, 2024. According to data from the FMDQ Security Exchange, this is a decrease from the ₦1643.20 rate recorded the previous day. However, in the black market, rates remain significantly higher, with the dollar trading at around ₦1,746 per dollar. These figures underscore the continued divergence between official and parallel market rates, despite efforts by the Central Bank of Nigeria (CBN) to unify exchange rate windows.
The CBN’s unification initiative, launched in June 2023, aimed to streamline all foreign exchange transactions under the Investors and Exporters (I&E) window. Under this model, FX transactions for medical expenses, tuition, and small and medium enterprises (SMEs) are processed through banks, while the I&E window operates on a willing buyer, willing seller basis. These changes were designed to stabilize the naira by allowing market forces to play a more prominent role in setting the currency’s value.
Despite these reforms, exchange rate pressures persist, reflecting a shift toward a more flexible system where Nigeria’s naira floats closer to market demand. The free-floating structure means the CBN no longer actively manages exchange rates, instead allowing the value to respond to market dynamics. However, with black market rates still notably higher, businesses and individuals may experience ongoing challenges as the naira seeks equilibrium.