Findwhosabi news has the latest update on the Dollar to Naira exchange rate for today, January 6, 2024. Official exchange rates, covering both the Bureau De Change (BDC) rates and those set by the Central Bank of Nigeria (CBN), have been obtained.
As per data released on the FMDQ Security Exchange, the official forex trading portal, the Naira commenced trading at ₦945.88 per dollar on Thursday, January 4, 2024, and concluded the day at ₦895.23 per $1.
It is noteworthy that despite the Central Bank of Nigeria’s announcement regarding the unification of all segments of the foreign exchange market, the Naira is currently trading at a high of ₦1,175 per Dollar in the black market.
The Central Bank’s circular issued on June 14, 2023, declared the abolition of segmentation, consolidating all FX windows into the Investors and Exporters (I&E) window. This move included the re-introduction of the “Willing Buyer, Willing Seller” model at the I&E Window, with operations guided by existing circulars. The operational rate for government-related transactions is set as the weighted average rate of the preceding day’s executed transactions at the I&E window.
Furthermore, the circular prescribes the prohibition of trading limits on oversold FX positions, allowing the hedging of short positions with OTC futures, while limits on overbought positions are set at zero. The reintroduction of order-based two-way quotes with a bid-ask spread of N1, clearance by a Central Counter Party (CCP), and the reintroduction of an Order Book to ensure transparent and seamless execution of trades are also emphasized.
The operational hours for trades are specified as 9 a.m to 4 p.m, Nigeria time. The apex bank assures that additional guidance on these operational changes will be communicated to authorized dealers and the general public in due course.
These significant operational changes in Nigeria’s FX market signal a shift towards a more flexible exchange rate system, allowing the Naira to float freely. A free-floating exchange rate is characterized by the government letting market forces determine the exchange rate without intervention from the central bank, showcasing a move towards a more market-driven approach.