In today’s financial report, Findwhosai News brings you the latest updates on the Dollar to Naira exchange rates in Nigeria, covering both official and parallel market rates.
Official Exchange Rate:
According to data released on the FMDQ Security Exchange, the official forex trading portal, the Naira opened at ₦945.88 per dollar on Thursday, January 4, 2024. The day concluded with a closing rate of ₦895.23 per $1. This information sheds light on the official rates endorsed by financial authorities.
Unification Efforts by CBN:
Despite efforts by the Central Bank of Nigeria (CBN) to unify the foreign exchange market, the Naira is trading as high as ₦1,175 per Dollar in the black market. The CBN, in a circular dated June 14, 2023, announced the collapse of all FX windows into the Investors and Exporters (I&E) window. This move aimed to streamline the forex market segments and establish a more uniform exchange rate.
Operational Changes:
As part of the changes, the CBN reintroduced the “Willing Buyer, Willing Seller” model at the I&E Window, allowing eligible transactions to access foreign exchange. The operational rate for government-related transactions is now based on the weighted average rate of the preceding day’s executed transactions at the I&E window.
Market Dynamics:
The proscription of trading limits on oversold FX positions, the reintroduction of order-based two-way quotes with a bid-ask spread of N1, and the reestablishment of the Order Book for transparent order placement are among the key operational changes. The market now operates from 9 a.m to 4 p.m, Nigeria time.
Free-Floating Exchange Rate:
These modifications indicate a significant shift in Nigeria’s FX market dynamics, suggesting a more relaxed control over the Naira. A free-floating exchange rate is now in play, allowing market forces to determine the Naira’s external value without active interference from the central bank.
The CBN has assured further guidance on these operational changes, emphasizing transparency and seamless execution of trades. Stay tuned for more updates as Findwhosabi News continues to monitor the evolving financial landscape.
