The Naira showed slight improvement against the U.S. dollar in the official market as data from the Central Bank of Nigeria (CBN) revealed an appreciation to N1,528.03 per dollar on Monday, March 17, 2025, up from N1,517.93 recorded last Friday. However, on the streets, the story is different, with the dollar exchanging for as high as N1,575 per dollar in the black market.
Despite CBN’s efforts to unify all foreign exchange segments into the Investors & Exporters (I&E) window since June 2023, parallel market rates continue to diverge significantly from official figures. The apex bank had earlier outlined key reforms, including the return of the “Willing Buyer, Willing Seller” model and the removal of trading limits on FX positions to enhance market efficiency. These measures aim to create a transparent and market-driven exchange rate system.
The shift toward a freely floating naira means that market forces now primarily determine exchange rates without CBN intervention. While this approach fosters transparency, the widening gap between official and black-market rates raises concerns over liquidity and forex supply. As businesses and individuals navigate this evolving landscape, the resilience of the naira will largely depend on the strength of Nigeria’s forex inflows and economic policies.