In an exclusive report obtained by Findwhosabi News, we present the latest developments in the Dollar to Naira exchange rate for today, February 13, 2024, encompassing official rates and market dynamics.
Official Exchange Rate: The official exchange rate between the Naira and the US dollar, as disclosed by the FMDQ Security Exchange, Nigeria’s official forex trading portal, revealed that the Naira commenced trading at ₦1476.13 per dollar on Thursday, February 8, 2024. The day concluded with the Naira closing at ₦1534.39 per $1 on Monday, February 12, 2024.
Black Market Rates: Contrary to official figures, the black market reflects a higher Naira to Dollar exchange rate, reaching ₦1,490 per Dollar. This surge persists despite the Central Bank of Nigeria (CBN) announcing the unification of all segments within the foreign exchange market.
CBN’s Circular on FX Market Unification: In a circular issued on June 14, 2023, the CBN declared the abolition of segmentation within the FX market. All segments were consolidated into the Investors and Exporters (I&E) window, and transactions for medicals, school fees, BTA/PTA, and SMEs were to be processed through deposit money banks.
Furthermore, the CBN reintroduced the “Willing Buyer, Willing Seller” model at the I&E Window, with operational guidelines based on an existing circular from April 21, 2017. The operational rate for government-related transactions was set as the weighted average rate of the preceding day’s executed transactions at the I&E window.
Operational Changes in the FX Market: The CBN announced the proscription of trading limits on oversold FX positions and permitted the hedging of short positions with OTC futures, while overbought positions faced zero limits. Additionally, the reintroduction of order-based two-way quotes with a bid-ask spread of N1 aimed to enhance transparency.
The operational hours for trades were specified as 9 a.m to 4 p.m, Nigeria time, and further guidance on these changes would be communicated to authorized dealers and the public in due course. These adjustments imply a relaxation of control over the Naira, signaling a move towards a free-floating exchange rate system.
Free-Floating Exchange Rate: The shift towards a free-floating exchange rate suggests that the government allows market forces to determine the exchange rate without intervention from the central bank. This move is indicative of Nigeria easing its control over the Naira, fostering a more dynamic and market-driven approach to currency valuation. Findwhosabi News will continue to monitor and report on updates in the foreign exchange landscape.