The Naira opened the forex market on October 10, 2024, trading at ₦1640.45 per dollar and closed slightly higher at ₦1641.27 by October 11, according to data from FMDQ. However, in the black market, the Naira is exchanging for as high as ₦1780 per dollar, reflecting widening pressure despite efforts by the Central Bank of Nigeria (CBN) to unify the exchange market.
Following the CBN’s policy shift on June 14, 2023, all forex segments were merged into the Investors and Exporters (I&E) window. This policy reintroduced a “Willing Buyer, Willing Seller” model, giving more flexibility to market participants. Government transactions now follow a weighted average rate, with key transactions such as school fees and travel allowances continuing through commercial banks.
The floating exchange rate structure signals reduced government control over the Naira’s value, leaving its rate to be shaped by market forces. Operational changes, including extended trading hours and the reintroduction of order-based trading, aim to enhance market transparency and efficiency. While the transition allows more freedom for currency trading, the Naira continues to face volatility.