In a significant move, the Central Bank of Nigeria (CBN) has consolidated all segments of the foreign exchange market, unifying the various rates into the Investors and Exporters (I&E) window. Findwhosabi News has acquired the latest official exchange rates for the Dollar to Naira, encompassing both the Bureau De Change (BDC) rates and CBN rates.
As of today, February 10, 2024, the official exchange rate between the Naira and the US Dollar, as per data from the FMDQ Security Exchange, reveals that the Naira opened at ₦1451.37 per dollar on Thursday, February 08, 2024, and closed at ₦1469.97 per $1 on Friday, February 09, 2024.
Despite the Central Bank’s effort to unify the exchange rates, the Naira is trading as high as ₦1,455 per Dollar at the black market. This development follows the CBN’s circular on June 14, 2023, which collapsed all FX windows into the I&E window, marking a departure from the segmented approach.
The apex bank has reintroduced the “Willing Buyer, Willing Seller” model at the I&E Window, emphasizing that all eligible transactions can access foreign exchange at this window. Noteworthy operational changes include the abolition of trading limits on oversold FX positions, the re-introduction of order-based two-way quotes with a bid-ask spread of N1, and the reintroduction of the Order Book for transparent order execution.
Operational hours for trades are set from 9 a.m to 4 p.m, Nigeria time. The CBN emphasized that further guidance on these operational changes would be communicated to authorized dealers and the public in due course.
These changes signal a significant shift in Nigeria’s foreign exchange market, indicating a more liberalized approach and a move towards a free-floating exchange rate. A free-floating exchange rate allows market forces to determine the exchange rate, with no attempt by the central bank to influence its external value. Investors and the public are advised to stay informed as the market adapts to these transformative adjustments.