The official exchange rate between the Naira and the US Dollar, according to data from the FMDQ Security Exchange, showed that the Naira opened at ₦945.88 per dollar on Friday, January 5, 2024, and closed at ₦869.39 per $1 on the same day.
However, the Naira is trading as high as ₦1,175 per Dollar in the black market, despite the Central Bank of Nigeria (CBN) announcing the unification of all segments of the foreign exchange market. The CBN had collapsed all FX windows into the Investors and Exporters (I&E) window, aiming to streamline and unify the foreign exchange market.
The apex bank also reintroduced the “Willing Buyer, Willing Seller” model at the I&E Window and abolished segmentation, bringing all segments into the I&E window. Additionally, the operational rate for all government-related transactions is now the weighted average rate of the preceding day’s executed transactions at the I&E window.
The changes suggest a move towards a more flexible exchange rate system, allowing market forces to play a greater role in determining the value of the Naira against other currencies.
Please note that the black market rate is subject to fluctuations based on supply and demand dynamics and may differ from the official rates provided by the CBN.