The Naira opened at ₦1,555 per $1 on January 23, 2025, and closed at ₦1,531.20 on January 24, according to FMDQ Securities Exchange data. However, in the black market, the Naira is trading as high as ₦1,660 per dollar, reflecting significant pressure on the local currency.
The Central Bank of Nigeria (CBN) had earlier unified all foreign exchange windows into the Investors and Exporters (I&E) window, allowing market forces to determine the Naira’s value. This “willing buyer, willing seller” model aims to improve transparency and efficiency in forex trading.
The shift to a free-floating exchange rate means that the Naira’s value will now be determined by supply and demand dynamics, a move expected to stabilize the market over time but also introduces greater volatility in the short term.