The official exchange rate between the Naira and the US Dollar opened at ₦1,550 per $1 on Monday, December 23, 2024, and closed slightly lower at ₦1,540.65 per $1 on Tuesday, December 24, 2024, according to the FMDQ Security Exchange. However, in the black market, the Dollar is trading as high as ₦1,640, despite efforts by the Central Bank of Nigeria (CBN) to unify the forex market.
In June 2023, the CBN announced the collapse of all FX market segments into the Investors and Exporters (I&E) window, implementing the “Willing Buyer, Willing Seller” model. This change allowed eligible transactions to access foreign exchange transparently, with rates guided by market forces. Operational changes also included abolishing trading limits on oversold positions, reintroducing order-based quotes, and ensuring transparency with an Order Book system.
The shift to a free-floating exchange rate signifies that Nigeria’s Naira value is now determined by market forces. This policy aims to enhance transparency and accessibility in the FX market, although the disparity between official and black-market rates remains a concern for many.