In today’s financial update, Findwhosabi News brings you the latest on the Dollar to Naira exchange rates for February 17, 2024. The official rates, including the Bureau De Change (BDC) rate and Central Bank of Nigeria (CBN) rates, have been obtained for our readers.
As per the data released on the FMDQ Security Exchange, the official forex trading portal, the Naira commenced the day at ₦1519.46 per dollar on Thursday, February 15, 2024. The closing rate stood at ₦1537.96 per $1 on Friday, February 16, 2024.
Despite the official rates, the Naira is currently trading at a higher rate of ₦1,600 per Dollar in the black market. This is noteworthy, especially in light of the CBN’s announcement regarding the unification of all segments of the foreign exchange market.
The CBN’s circular issued on June 14, 2023, declared the abolishment of segmentation, consolidating all segments into the Investors and Exporters (I&E) window. The reintroduction of the “Willing Buyer, Willing Seller” model at the I&E Window was emphasized, with operations guided by existing circulars.
Key operational changes include:
- Government-related transactions will use the weighted average rate from the preceding day’s I&E window transactions.
- Proscription of trading limits on oversold FX positions, with the allowance to hedge short positions with OTC futures.
- Reintroduction of order-based two-way quotes with a bid-ask spread of N1.
- The reintroduction of the Order Book to ensure transparency in orders and seamless trade execution.
- Operational hours from 9 a.m to 4 p.m, Nigeria time.
The CBN highlighted that further guidance on these operational changes would be communicated to authorized dealers and the general public in due course.
These alterations in Nigeria’s FX market operations signify a shift towards a more flexible exchange rate system, allowing the Naira to float freely. A free-floating exchange rate occurs when the government permits market forces to determine the exchange rate without intervention from the central bank. Findwhosabi News will continue to monitor and report on any further developments in Nigeria’s financial landscape.