In an exclusive report, Findwhosabi News brings you the latest updates on the Dollar to Naira exchange rates for today, February 6, 2024. Our team has obtained the official exchange rates, encompassing both Bureau De Change (BDC) rates and Central Bank of Nigeria (CBN)
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Official Exchange Rate Highlights:
According to data released on the FMDQ Security Exchange, the official forex trading portal, the Naira commenced the day at ₦1444.24 per dollar on Monday, February 5, 2024, closing at ₦1419.86 per $1 on Friday, February 2, 2024.
Despite the Central Bank’s unification efforts across all foreign exchange market segments, the Naira is currently trading at ₦1,425 per Dollar in the black market.
CBN’s Market Unification Measures:
In a circular issued on June 14, 2023, the Central Bank of Nigeria announced the abolition of segmentation, collapsing all FX windows into the Investors and Exporters (I&E) window. Notably, applications for medicals, school fees, BTA/PTA, and SMEs continue to be processed through deposit money banks.
The circular reintroduced the “Willing Buyer, Willing Seller” model at the I&E Window, guiding operations based on a previous circular dated April 21, 2017. All eligible transactions are permitted to access foreign exchange at this window.
Operational Changes and Implications:
Key operational changes include the proscription of trading limits on oversold FX positions, with permission to hedge short positions with OTC futures. Limits on overbought positions are set at zero.
The reintroduction of order-based two-way quotes, featuring a bid-ask spread of N1, aims to enhance transparency. All transactions are cleared by a Central Counter Party (CCP), and the order book is reinstated to ensure transparency of orders and seamless execution of trades.
Operational hours for trades have been set from 9 a.m to 4 p.m, Nigeria time. The Central Bank emphasizes that further guidance on these operational changes will be communicated to authorized dealers and the general public in due course.
These changes signify a significant shift in Nigeria’s FX market operations, indicating a move towards a free-floating exchange rate. In this model, the government allows the exchange rate to be determined solely by market forces, without intervention from the central bank.