In a recent report obtained by Findwhosabi News, the official exchange rates for Dollar to Naira in Nigeria have been revealed, encompassing various market segments, including the Bureau De Change (BDC) and Central Bank of Nigeria (CBN) rates.
Official Exchange Rate According to FMDQ Security Exchange Data
Data from the FMDQ Security Exchange, the official forex trading portal, indicates that the Naira commenced trading at ₦1451.37 per dollar on Thursday, February 08, 2024. The week concluded with the Naira closing at ₦1469.97 per $1 on Friday, February 09, 2024.
Despite these official rates, the black market is witnessing a surge, with the Naira trading as high as ₦1,455 per Dollar. This trend persists even after the CBN’s announcement of the unification of all segments in the foreign exchange market.
CBN’s Measures to Unify FX Markets
The Central Bank of Nigeria took a significant step in streamlining the foreign exchange market. In a circular dated June 14, 2023, the apex bank declared the collapse of all FX windows into the Investors and Exporters (I&E) window.
Key directives include:
- Abolishment of segmentation, with all segments now merged into the I&E window.
- Reintroduction of the “Willing Buyer, Willing Seller” model at the I&E Window.
- Operational rate for government-related transactions set as the weighted average rate of the preceding day’s executed transactions at the I&E window.
- Proscription of trading limits on oversold FX positions and permission to hedge short positions with OTC futures.
- Reintroduction of order-based two-way quotes, with a bid-ask spread of N1.
- Operational hours for trades from 9 a.m to 4 p.m, Nigeria time.
The CBN emphasized that further guidance on operational changes would be communicated to authorized dealers and the general public in due course.
These alterations to the FX market operations indicate a shift in Nigeria’s approach, suggesting a move towards a free-floating exchange rate. In a free-floating exchange rate system, the government allows market forces to determine the exchange rate without interference from the central bank.