On October 24, the Naira opened at ₦1,657.18 per dollar, but by the next day, it closed stronger at ₦1,600.00.
However, in the black market, it reached as high as ₦1,740, despite efforts to unify Nigeria’s forex market.
On October 24, 2024, the Naira opened at ₦1,657.18 per dollar, according to data from the FMDQ Security Exchange.
By the next day, the currency showed some strength, closing at ₦1,600.00.
However, behind the scenes, the story was different.
In the bustling black market, the Naira traded as high as ₦1,740 per dollar, revealing a gap between the official rates and what people were paying on the street.
This situation unfolded despite the Central Bank of Nigeria’s (CBN) efforts to unify the foreign exchange market.
Back in June 2023, the CBN made a bold move by collapsing all foreign exchange windows into a single one, known as the Investors and Exporters (I&E) window.
The idea was to simplify things and make it easier for people and businesses to access foreign currency.
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The bank introduced a “Willing Buyer, Willing Seller” model, allowing market forces to guide the exchange rate while still maintaining some level of oversight.
These changes allowed the Naira to float more freely.
The previous day’s average at the I&E window now determined the official rate for government transactions.
The authorities also removed trading limits on foreign currency positions, giving more flexibility to buyers and sellers.
Although the aim was to bring transparency and stability to the market, the reality proved more complex.
As the Naira continued to fluctuate, the gap between the official and black market rates persisted.
This raised questions about the true impact of the new policy and whether the local currency could find its balance in a market driven by supply and demand.