The Naira made a mild recovery against the U.S. dollar as official exchange rates from the Central Bank of Nigeria (CBN) showed an appreciation to ₦1,498.98/$1 on Monday, March 3, 2025, up from ₦1,492.49/$1 last Friday. However, the black-market rate remains above the official benchmark, with the Naira trading as high as ₦1,505/$1 in parallel markets.
Despite CBN’s push for a unified forex market, volatility persists. The apex bank had announced the collapse of all FX segments into the Investors & Exporters (I&E) window, allowing transactions to be guided by a “Willing Buyer, Willing Seller” model. This shift effectively means that Nigeria is operating a more flexible exchange rate system, where market forces play a bigger role in determining the Naira’s value. However, the challenge remains in achieving true stability in the forex market amidst fluctuating demand and liquidity constraints.