The exchange rate between the US Dollar and the Nigerian Naira continues to fluctuate amid ongoing forex market reforms introduced by the Central Bank of Nigeria (CBN).

As of Wednesday, August 6, 2025, data from the CBN’s official forex trading portal reveals that the Naira exchanged at ₦1,534.43 to $1, a slight depreciation from ₦1,533.10/$1 recorded on Tuesday, August 5.

Black Market Rate (Parallel Market)

Despite the official figures, the Naira is currently trading at significantly higher rates in the parallel (black) market. Reports indicate a rate of up to ₦1,562 per dollar on the streets, a reflection of demand pressure and limited forex supply through official channels.

Forex Market Policy Update

Recall that in a major reform move, the CBN in June 2023 announced the unification of all foreign exchange segmentsinto a single Investors and Exporters (I&E) window.

According to the apex bank’s circular:

  • All FX segments are now collapsed into the I&E window.

  • Applications for essentials like medical bills, school fees, personal and business travel allowances (BTA/PTA), and SME needs are to be routed through commercial banks.

  • The “Willing Buyer, Willing Seller” model was reintroduced to allow market-driven rates.

  • The operational rate for government-related transactions is now the weighted average of the previous day’s I&E window trading.

  • Trading hours for FX operations remain 9 a.m. to 4 p.m. daily.

The CBN also abolished trading limits on oversold positions and brought back features like order-based two-way quotesand central counterparty clearing, all aimed at boosting transparency and liquidity in the forex market.

What This Means for Nigerians

With the currency now operating under a more flexible exchange rate regime, the value of the Naira is largely dictated by market forces—demand and supply. While this could enhance transparency, it also means greater volatility in pricing, especially at the retail level.

Disclaimer

Naija Blog does not set or regulate foreign exchange rates. Official rates are sourced from the FMDQ OTC Securities Exchange, while parallel market rates are based on data from traders and market observers. Your actual buying or selling rates may vary depending on location and provider.