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Naira Battles Dollar as Exchange Rate Swings Again

The Dollar-to-Naira exchange rate remains a key focus in Nigeria’s financial landscape. As of today, February 23, 2025, official data from the FMDQ Securities Exchange shows the Naira opened at ₦1503.14 per $1 and closed slightly stronger at ₦1500.65 per $1. However, in the parallel market, the Naira is trading as high as ₦1,505 per Dollar, reflecting ongoing volatility despite the Central Bank of Nigeria’s (CBN) efforts to unify the forex market.

CBN’s foreign exchange reforms, including collapsing all FX segments into the Investors & Exporters (I&E) window, aim to improve transparency and market efficiency. Under this system, transactions such as medicals, school fees, and travel allowances continue through commercial banks, while market-driven dynamics dictate rates. This shift essentially allows the Naira to float more freely, reducing direct government intervention in pricing. While the long-term impact remains uncertain, businesses and individuals must stay informed and adapt to the evolving currency landscape.

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