The official exchange rate between the Naira and Dollar showed some volatility last week. According to FMDQ, the Naira opened at ₦1657.18 per $1 on Thursday, October 24, and closed at ₦1600.00 per $1 on Friday, October 25, 2024. Despite the Central Bank of Nigeria’s (CBN) unification efforts, the Naira is trading as high as ₦1,740 per Dollar on the black market today, October 28, 2024.
CBN had collapsed all FX market segments into the Investors & Exporters (I&E) window as part of reforms announced in June 2023. This move allowed more flexibility by reintroducing the “Willing Buyer, Willing Seller” model, signaling a shift towards a free-floating exchange rate. The apex bank also abolished trading limits on oversold FX positions to stabilize market liquidity.
These reforms aim to let market forces guide the exchange rate, reducing the CBN’s direct control. A floating exchange rate structure gives room for the Naira’s value to adjust naturally, though fluctuations, like today’s black-market spike, remain a challenge for Nigeria’s forex market stability.