Today’s Naira to Dollar Exchange Rate: October 24 Update on Black Market Trends

The Nigerian naira maintained its stability in the official Nigerian Foreign Exchange Market (NFEM) on Friday, yet it continued to depreciate in the parallel market.

Within the NFEM, also referred to as the Investors and Exporters (I&E) window, the dollar was quoted at approximately ₦1,460 per $1, indicating a slight decline compared to earlier in the week.

Parallel Market Rates Remain Higher

Conversely, the parallel market, where cash transactions in dollars occur, saw higher exchange rates.

Currency dealers in Lagos and other major cities reported the dollar trading between ₦1,495 and ₦1,515, with certain transactions hitting the higher end of that range. This resulted in an average street rate of about ₦1,500 per dollar.

Impact on Businesses and Consumers

Those conducting business and importing goods through official channels are taking advantage of the more favorable NFEM rate of around ₦1,460.

However, individuals who buy or sell cash on the street face higher parallel rates between ₦1,495 and ₦1,515, making travel, remittances and imported goods more expensive.

Why the Exchange Rate Gap Persists

The gap between official and parallel rates is largely driven by differences in dollar liquidity, access to official forex windows, and market sentiment.

Analysts believe the Central Bank of Nigeria’s (CBN) policies and interventions have kept the official rate stable despite rising cash demand in the parallel market.

Outlook for the Coming Week

Experts say traders will closely monitor CBN interventions, weekly FX turnover, and global dollar trends.

If the CBN increases dollar supply through the official channels, the naira may remain steady or strengthen. However, sustained cash demand could keep the parallel market premium high.