The Naira has reached new lows in both official and black market trading. On November 20, 2024, the currency closed at ₦1687.52 per $1 on Nigeria’s official forex platform, the FMDQ Exchange, while black market rates rose to around ₦1,740 per Dollar. This gap persists despite the Central Bank of Nigeria (CBN) merging all FX segments into the Investors & Exporters (I&E) window earlier this year.
The CBN’s June directive unified FX windows to stabilize exchange rates and introduced measures like a “Willing Buyer, Willing Seller” model for greater transparency. However, market forces continue to drive the exchange rate higher, signaling a depreciation of the Naira.
The shift to a free-floating exchange rate, allowing market forces to determine value, aligns with the CBN’s plan to ease currency controls, though challenges remain as Nigeria’s economic pressures continue to impact the Naira’s stability.