In a recent development, Findwhosabi News has obtained the latest official Dollar to Naira exchange rates for today, shedding light on the Bureau De Change (BDC) rates and Central Bank of Nigeria (CBN) rates.
Official Exchange Rate for Dollar to Naira Today:
According to data released on the FMDQ Security Exchange, the official forex trading portal, the Naira initiated trading at ₦1421.29 per dollar on February 6, 2024, and concluded at ₦1418.78 per $1 on February 7, 2024.
Despite these official rates, the parallel market is witnessing a surge, with the Naira trading as high as ₦1,455 per Dollar. This comes in contradiction to the Central Bank of Nigeria’s (CBN) announcement regarding the unification of all segments of the foreign exchange market.
In a circular released on June 14, 2023, the CBN declared the collapse of all FX windows into the Investors and Exporters (I&E) window. The circular emphasized the re-introduction of the “Willing Buyer, Willing Seller” model at the I&E Window, allowing eligible transactions to access foreign exchange. The operational rate for government-related transactions was set to be the weighted average rate of the preceding day’s executed transactions at the I&E window.
Additional operational changes included the proscription of trading limits on oversold FX positions, the re-introduction of order-based two-way quotes, and the reintroduction of an Order Book for transparency of orders and seamless execution of trades. Operational hours were specified to be from 9 a.m to 4 p.m, Nigeria time.
The CBN clarified that further guidance on these operational changes would be communicated to authorized dealers and the general public in due course. These modifications in the FX market signify a relaxation of Nigeria’s control over the Naira, allowing the local currency to freely fluctuate based on market forces.
It is important to note that a free-floating exchange rate occurs when a government permits the exchange rate to be solely determined by market forces without any attempt to influence it through central bank intervention.