Findwhosabi News brings you the latest on the official dollar to naira exchange rates in Nigeria, encompassing data from both Bureau De Change (BDC) and Central Bank of Nigeria (CBN) rates.
As of today, the exchange rate between the Naira and the US dollar, as per data from the FMDQ Security Exchange, the official forex trading portal, indicates that the Naira opened at ₦803.10 per dollar on Friday, November 17, 2023, and closed at ₦791.75 per $1 on the same day.
However, a notable discrepancy emerges as the Naira is trading as high as ₦1,130 per Dollar in the black market, despite the recent announcement by the Central Bank of Nigeria (CBN) regarding the unification of all segments of the foreign exchange market.
The CBN’s statement outlined significant changes in the market, including the abolishment of segmentation. All segments are now consolidated into the Investors and Exporters (I&E) window. Various transactions such as medicals, school fees, BTA/PTA, and SMEs would continue to be processed through deposit money banks.
Furthermore, the “Willing Buyer, Willing Seller” model is reintroduced at the I&E Window, and the operational rate for government-related transactions is determined by the weighted average rate of the preceding day’s executed transactions at the I&E window.
Additional measures include the proscription of trading limits on oversold FX positions, with permission to hedge short positions with OTC futures. The reintroduction of order-based two-way quotes with a bid-ask spread of N1 is also highlighted, and all transactions are set to be cleared by a Central Counter Party (CCP). The order book is reintroduced to ensure transparency of orders and seamless execution of trades, with operational hours from 9 a.m to 4 p.m, Nigeria time.
These operational changes signify a shift in Nigeria’s FX market, suggesting a relaxation of control over the naira and allowing the local currency to float freely. In a free-floating exchange rate system, the government permits market forces to determine the exchange rate without intervention from the central bank, fostering a more dynamic and market-driven foreign exchange environment. Further guidance on these changes will be communicated to authorized dealers and the general public in due course.