In a recent update, Findwhosabi News has obtained the official exchange rates for the Dollar to Naira in Nigeria today, encompassing both the Bureau De Change (BDC) and Central Bank of Nigeria (CBN) rates.
Official Exchange Rate Today:
According to data released on the FMDQ Security Exchange, the Naira commenced trading at ₦1514.29 per dollar on Monday, February 12, 2024. By the close of business on Tuesday, February 13, 2024, it had settled at ₦1499.07 per $1.
Despite these official rates, the parallel market is witnessing a higher exchange rate, with the Naira trading at ₦1,455 per Dollar. This is noteworthy considering the recent announcement by the Central Bank of Nigeria (CBN) regarding the unification of all segments of the foreign exchange market.
CBN’s Recent Measures:
The CBN, in a circular dated June 14, 2023, declared the abolishment of segmentation within the foreign exchange market. All segments are now consolidated into the Investors and Exporters (I&E) window. Notable points from the circular include:
- Applications for various purposes such as medicals, school fees, BTA/PTA, and SMEs will continue to be processed through deposit money banks.
- Reintroduction of the “Willing Buyer, Willing Seller” model at the I&E Window.
- The operational rate for government-related transactions will be the weighted average rate of the preceding day’s executed transactions at the I&E window.
- Proscription of trading limits on oversold FX positions with permission to hedge short positions with OTC futures.
- Reintroduction of order-based two-way quotes with a bid-ask spread of N1. All transactions will be cleared by a Central Counter Party (CCP).
- Reintroduction of Order Book to ensure transparency of orders and seamless execution of trades.
- Operational hours for trades shall be from 9 a.m to 4 p.m, Nigeria time.
The CBN emphasizes that further guidance on operational changes will be communicated to authorized dealers and the general public in due course.
These modifications in the country’s FX market suggest a shift towards a more flexible approach, allowing the Naira to float freely as Nigeria eases its control over the local currency. The move towards a free-floating exchange rate indicates a reliance on market forces without direct central bank intervention in determining external exchange values.