In a significant shift in Nigeria’s foreign exchange landscape, Findwhosabi News has obtained the official exchange rates for the Dollar to Naira as of today, February 3, 2024. This development comes as the Central Bank of Nigeria (CBN) announces a move towards a free-floating exchange rate system.
According to data released on the FMDQ Security Exchange, the official forex trading portal, the Naira opened at ₦1461.90 per dollar on Thursday, February 01, 2024, and maintained the same closing rate on the same day.
However, despite the official rates, the Naira is currently trading at ₦1,425 per Dollar at the black market, reflecting a deviation from the Central Bank’s unification efforts across all segments of the foreign exchange market.
This shift in policy was communicated by the apex bank through a circular issued on June 14, 2023. The circular declared the collapse of all FX windows into the Investors and Exporters (I&E) window, introducing the “Willing Buyer, Willing Seller” model. The operational hours for trades in this window are set from 9 a.m to 4 p.m, Nigeria time.
In a bid to enhance transparency and efficiency, the CBN reintroduced the Order Book system, ensuring the seamless execution of trades. The operational rate for government-related transactions will be the weighted average rate of the preceding day’s executed transactions at the I&E window, calculated to two decimal places.
Furthermore, the apex bank abolished trading limits on oversold FX positions while permitting the hedging of short positions with over-the-counter (OTC) futures. The oversold positions will have zero limits on overbought positions.
This strategic move indicates Nigeria’s decision to ease its control over the Naira, embracing a free-floating exchange rate system where market forces determine the external value of the currency. The CBN assures that additional guidance on operational changes will be communicated to authorized dealers and the general public in due course.
Stay tuned for more updates on Nigeria’s evolving foreign exchange landscape.