The Naira showed signs of recovery in the official market, strengthening to ₦1,517.93 per dollar on Friday, March 14, 2025, from ₦1,547.81 recorded the previous day, according to data from the Central Bank of Nigeria (CBN). However, in the parallel market, the Naira continued to trade at a higher rate, reaching ₦1,582 per dollar, despite ongoing reforms aimed at unifying the foreign exchange market.
The CBN’s June 2023 directive collapsed all forex segments into the Investors & Exporters (I&E) window, reinforcing a “Willing Buyer, Willing Seller” model. This framework allows all eligible transactions—including medicals, school fees, and SMEs—to access forex at market-driven rates. The new system also reinstates an order-book model to enhance transparency and eliminates limits on oversold FX positions, allowing for better risk management.
With these reforms, Nigeria’s FX market is gradually shifting towards a floating exchange rate, where the value of the Naira is determined by market forces rather than strict regulatory controls. While the policy aims to improve liquidity and market efficiency, its impact on exchange rate stability remains a key area of focus for economic stakeholders.