In the latest update on the Dollar to Naira exchange rate, Findwhosabi News has acquired comprehensive information on the official rates, including those from the Bureau De Change (BDC) and the Central Bank of Nigeria (CBN).
As reported by the FMDQ Security Exchange, the official forex trading portal, the Naira opened at ₦793.90 per dollar on Wednesday, November 15, 2023, and closed at ₦818.99 per $1 on the same day.
However, despite the Central Bank of Nigeria’s announcement of the unification of all foreign exchange market segments, the Naira is trading as high as ₦1,130 per Dollar in the black market.
The CBN, through a circular on June 14, 2023, declared the abolition of segmentation, consolidating all segments into the Investors and Exporters (I&E) window. This decision aimed to streamline the foreign exchange market and enhance transparency.
The circular outlined key operational changes, including the reintroduction of the “Willing Buyer, Willing Seller” model at the I&E Window. Transactions at this window would be guided by the extant circular dated April 21, 2017. All eligible transactions were permitted to access foreign exchange at this window.
For government-related transactions, the operational rate would be the weighted average rate of the preceding day’s executed transactions at the I&E window. The circular also proscribed trading limits on oversold FX positions, allowing hedging of short positions with OTC futures. Limits on overbought positions were set at zero.
Other significant changes included the reintroduction of order-based two-way quotes, with a bid-ask spread of N1, and the reintroduction of the Order Book to ensure transparency and seamless execution of trades.
The operational hours for trades were set from 9 a.m to 4 p.m, Nigeria time. The CBN noted that further guidance on the operational changes would be communicated to authorized dealers and the general public.
These adjustments suggest a move towards a free-floating exchange rate in Nigeria, indicating a shift towards allowing market forces to determine the Naira’s external value. This move reflects an easing of control over the national currency by the Nigerian government.