In a recent development reported by Findwhosabi News, the official exchange rates for the Dollar to Naira in Nigeria have been disclosed, encompassing rates from both the Bureau De Change (BDC) and the Central Bank of Nigeria (CBN).
Official Exchange Rate:
According to data sourced from the FMDQ Security Exchange, the official forex trading portal, the Naira initiated trading at ₦813.30 per dollar on Friday, November 10, 2023, and concluded at ₦780.14 per $1 on the same day.
Discrepancies in the Market:
Despite the Central Bank of Nigeria’s (CBN) announcement regarding the unification of all foreign exchange market segments, the Naira is currently being traded as high as ₦1,130 per Dollar in the black market. The CBN, through a circular issued on June 14, 2023, abolished segmentation, collapsing all segments into the Investors and Exporters (I&E) window.
Key Changes in Forex Operations:
The CBN reintroduced the “Willing Buyer, Willing Seller” model at the I&E Window, allowing eligible transactions to access foreign exchange. Operational rates for government-related transactions are now based on the weighted average rate of the preceding day’s executed transactions at the I&E window.
Trading limits on oversold FX positions were proscribed, with permission granted to hedge short positions with Over-The-Counter (OTC) futures. Further changes include the reintroduction of order-based two-way quotes with a bid-ask spread of N1, and the reimplementation of the Order Book to ensure transparency and seamless execution of trades.
Operational Details:
Operational hours for trades are set from 9 a.m to 4 p.m, Nigeria time. The CBN assured that additional guidance on these operational changes would be communicated to authorized dealers and the general public in due course.
These modifications signify a notable shift in Nigeria’s approach to its currency, suggesting a more flexible stance and an easing of control over the Naira in the foreign exchange market.