In an exclusive report by Findwhosabi News, today’s Dollar to Naira exchange rates have been disclosed, encompassing official figures, Bureau De Change (BDC) rates, and Central Bank of Nigeria (CBN) rates.
As per data unveiled on the FMDQ Security Exchange, the official forex trading portal, the Naira commenced trading at ₦1413.94 per dollar on Tuesday, January 30, 2024. The day concluded with the Naira at ₦1482.57 per $1.
Despite the Central Bank’s recent announcement of the unification of all foreign exchange market segments, the black market sees the Naira trading as high as ₦1,425 per Dollar.
The CBN, in a circular issued on June 14, 2023, declared the abolishment of segmentation, consolidating all segments into the Investors and Exporters (I&E) window. Notably, applications for medicals, school fees, BTA/PTA, and SMEs would still be processed through deposit money banks.
Furthermore, the circular reintroduced the “Willing Buyer, Willing Seller” model at the I&E Window, guided by existing regulations. Government-related transactions are pegged to the weighted average rate of the previous day’s executed transactions at the I&E window.
The Central Bank also proscribed trading limits on oversold FX positions and allowed hedging short positions with OTC futures. Limits on overbought positions were set at zero.
Order-based two-way quotes, with a bid-ask spread of N1, have been reintroduced, and all transactions will be cleared by a Central Counter Party (CCP). The reintroduction of an Order Book aims to enhance transparency and facilitate seamless execution of trades.
Operational hours for trades have been specified from 9 a.m to 4 p.m, Nigeria time. The Central Bank assured that further guidance on operational changes would be communicated to authorized dealers and the general public in due course.
These modifications indicate a significant shift in Nigeria’s FX market operations, signaling a move towards a free-floating exchange rate system. A free-floating exchange rate allows market forces to determine the exchange rate without interference from the central bank, marking a notable relaxation of control over the Naira.