LAGOS, Nigeria (CHATNEWSTV) — The Naira’s value against the U.S. Dollar continues to decline, with official trading closing at ₦1534.35 per $1 on Thursday, according to data from FMDQ Security Exchange. The figure marked a decrease from ₦1542.27 per $1 on Wednesday, December 11, 2024.
At the black market, however, the Naira is trading as high as ₦1,660 per Dollar, highlighting the persistent disparity despite the Central Bank of Nigeria’s (CBN) policy to unify the foreign exchange market.
In a pivotal move on June 14, 2023, the CBN announced the elimination of segmented forex markets, merging them into the Investors & Exporters (I&E) window. “All segments are now collapsed into the Investors and Exporters (I&E) window,” the CBN said in a statement. It emphasized that applications for transactions such as medicals, school fees, and personal travel allowances would continue through deposit money banks.
The apex bank also reintroduced the “Willing Buyer, Willing Seller” model to guide operations within the I&E window and established measures to ensure transparency in trading. “The operational rate for all government-related transactions shall be the weighted average rate of the preceding day’s executed transactions,” the circular noted.
Despite these efforts, analysts say Nigeria’s decision to allow the Naira to float freely—a policy allowing market forces to determine the exchange rate—has not eased the pressure on the local currency.
“The unification was meant to address inefficiencies in the FX market, but the demand for dollars remains overwhelming compared to supply,” a Lagos-based economist told AP.
The devaluation has ripple effects across Nigeria’s import-dependent economy, raising costs for businesses and households already grappling with inflation.
Further updates on the FX market operations are expected as the CBN continues to refine its policies.
