In an exclusive report by Findwhosabi News, the official exchange rate for the Dollar to Naira in Nigeria has been obtained, encompassing rates from both Bureau De Change (BDC) and Central Bank of Nigeria (CBN).
As per the data released on the FMDQ Security Exchange, the official forex trading portal, the Naira commenced trading at ₦1512.89 per dollar on Friday, February 16, 2024. The closing rate on Monday, February 19, 2024, stood at ₦1574.62 per $1.
Despite the Central Bank of Nigeria’s (CBN) announcement of the unification of all segments of the foreign exchange market, the Naira is currently trading as high as ₦1,650 per Dollar in the black market.
The CBN, in a circular dated June 14, 2023, declared the abolition of segmentation in the foreign exchange market, consolidating all segments into the Investors and Exporters (I&E) window. The circular stated that applications for medicals, school fees, BTA/PTA, and SMEs would continue to be processed through deposit money banks.
The reintroduction of the “Willing Buyer, Willing Seller” model at the I&E Window was emphasized, with operational rates based on the weighted average rate of the preceding day’s transactions. The circular also proscribed trading limits on oversold FX positions and reintroduced order-based two-way quotes with a bid-ask spread of N1.
Furthermore, the CBN reinstated the Order Book to ensure transparency in orders and seamless execution of trades, with operational hours set from 9 a.m to 4 p.m, Nigeria time.
These operational changes signal a significant shift in Nigeria’s FX market, indicating a move towards a free-floating exchange rate. A free-floating exchange rate allows market forces to determine the exchange rate without central bank intervention, marking a notable development in the country’s currency control policies. Further guidance on these operational changes will be communicated to authorized dealers and the general public in the coming days.