In a revelation that is reshaping the financial landscape, Findwhosabi News has obtained the latest Dollar to Naira exchange rates for today, featuring insights into the official rates and market dynamics.
Official Exchange Rate Unveiled by FMDQ Security Exchange
According to data released on the FMDQ Security Exchange, the official forex trading portal, the Naira embarked on today’s trading session at ₦780.83 per dollar, only to conclude the day at ₦795.41 per $1. This development signifies a notable fluctuation within the day’s trading activities.
Discrepancy with Black Market Rates
Despite the Central Bank of Nigeria’s (CBN) recent announcement on the unification of all foreign exchange market segments, the Naira is witnessing a surge to as high as ₦1,130 per Dollar in the black market. This variance raises questions about the effectiveness of recent regulatory measures.
CBN Implements Sweeping Changes in Forex Market
The CBN, in a circular dated 14th June 2023, declared the collapse of all FX windows into the Investors and Exporters (I&E) window. This move was accompanied by the reintroduction of the “Willing Buyer, Willing Seller” model, emphasizing transparency and operational guidelines from a circular dating back to 21st April 2017.
Operational Changes and Market Implications
The central bank further announced the abolition of trading limits on oversold FX positions, permitting the hedging of short positions with OTC futures. Notably, the operational rate for government-related transactions will be the weighted average of the preceding day’s executed transactions at the I&E window.
The reintroduction of order-based two-way quotes, a bid-ask spread of N1, and the Order Book for transparency are set to redefine the landscape of the country’s FX market. Operational hours have been designated from 9 a.m to 4 p.m, Nigeria time.
Nigeria Eases Control: A Move Towards a Free-Floating Exchange Rate
The alterations to FX market operations suggest a significant shift, indicating that Nigeria is relaxing its control over the Naira. The move towards a free-floating exchange rate reflects the government’s inclination to let market forces dictate currency valuations, signaling a new era in Nigeria’s economic policies.
As the currency market undergoes these transformative changes, authorized dealers and the general public can anticipate further guidance from the apex bank to navigate the evolving landscape.