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ABUJA, Nigeria (CHATNEWSTV) — The Naira opened trading at ₦1,605.30 per U.S. dollar on Wednesday, according to data from FMDQ Securities Exchange, Nigeria’s official forex trading platform. This represents a slight depreciation from Monday’s opening rate of ₦1,542.27 per dollar and a closing rate of ₦1,547.50 on Tuesday.
On the parallel market, however, the dollar is exchanging for as high as ₦1,660, reflecting continued pressure on the Naira despite efforts by the Central Bank of Nigeria (CBN) to unify the country’s multiple foreign exchange (FX) markets.
FX Market Unification
The CBN, in a June 2023 circular, announced the collapse of all FX market segments into the Investors and Exporters (I&E) window to improve market transparency and accessibility.
“All segments are now collapsed into the Investors and Exporters (I&E) window,” the apex bank stated. It also reintroduced the “Willing Buyer, Willing Seller” model, where eligible transactions are allowed to access FX freely based on prevailing market rates.
The CBN noted that official exchange rates for government transactions would align with the weighted average rate of executed transactions at the I&E window.
Black Market Pressures Persist
Despite these reforms, the black market remains a significant alternative for FX in Nigeria, with rates often deviating sharply from the official window. Analysts attribute the disparity to limited forex supply and increased demand for dollars to cover medical expenses, school fees, and business needs.
“The free-floating model adopted by the CBN allows the Naira to be determined by market forces, but the pressure on the currency highlights structural issues in Nigeria’s economy,” said economic analyst Aisha Balogun.
As of today, Nigerians seeking dollars for personal or business needs continue to face challenges, with rates fluctuating amid broader economic uncertainties.
The operational hours for FX trading remain 9 a.m. to 4 p.m. local time, as guided by the CBN. Further directives on forex policies are expected in due course, according to the apex bank.
