In a recent report obtained by Findwhosabi News, the official exchange rates for the Dollar to Naira in Nigeria have been disclosed, encompassing rates from both Bureau De Change (BDC) and the Central Bank of Nigeria (CBN).
The data, sourced from the FMDQ Security Exchange, the country’s official forex trading portal, indicates that the Naira commenced trading at ₦1551.90 per dollar on Wednesday, February 21, 2024, and concluded at ₦1571.31 per $1 on Thursday, February 22, 2024.
Contrastingly, the black market is witnessing a surge in the exchange rate, reaching as high as ₦1,860 per Dollar. This is noteworthy despite the Central Bank of Nigeria’s (CBN) announcement of the unification of all segments of the foreign exchange market.
The CBN’s circular on June 14, 2023, declared the collapse of all FX windows into the Investors and Exporters (I&E) window. It reintroduced the “Willing Buyer, Willing Seller” model at the I&E Window and abolished trading limits on oversold FX positions while allowing the hedging of short positions with OTC futures.
Additionally, the CBN reintroduced order-based two-way quotes with a bid-ask spread of N1 and reinstated the Order Book to enhance transparency and seamless execution of trades. The operational hours for trades were stipulated as 9 a.m to 4 p.m, Nigeria time.
The apex bank emphasized that further guidance on operational changes would be communicated to authorized dealers and the general public in due course. The shift in the country’s FX market operations suggests a relaxation of control over the Naira, allowing it to float freely.
A free-floating exchange rate, as implied by these changes, occurs when a government lets market forces determine the exchange rate without central bank intervention, indicating a more market-oriented approach.