These reforms have prompted an increase in trading activity, with recent reports suggesting trading reached Naira 750 per dollar. In addition, the exchange rate for “inflows,” which represent the sale of dollars and other currencies via wire transfer, soared to 773 naira to the dollar on the black market.
The expected official approval will give more clarity to market trends and the extent of the reforms. The move to a market-determined exchange rate represents an important step towards a more flexible and transparent exchange rate regime in Nigeria.
As Nigeria moves closer to implementing these currency reforms, stakeholders and market participants are closely monitoring developments that could shape the country’s economic trajectory and boost investor confidence. The harmonization of exchange rates and the introduction of market-driven exchange rates aim to create a more favorable environment for trade, investment and economic growth.
