In a recent update, Findwhosabi News has obtained the latest official dollar to naira exchange rates in Nigeria, shedding light on the Bureau De Change (BDC) rate and Central Bank of Nigeria (CBN) rates.
Official Exchange Rate for Dollar to Naira Today:
According to data released on the FMDQ Security Exchange, the official forex trading portal, the Naira exhibited fluctuations. It opened at ₦1621.41 per dollar on Tuesday, February 20, 2024, and closed at ₦1542.58 per $1 on Wednesday, February 21, 2024.
However, the black market tells a different story, with the Naira trading as high as ₦1,650 per Dollar. This is noteworthy, considering the CBN’s recent announcement of the unification of all segments of the foreign exchange market.
The CBN’s circular on June 14th, 2023, declared the abolition of segmentation, collapsing all segments into the Investors and Exporters (I&E) window. Notably, applications for medicals, school fees, BTA/PTA, and SMEs would continue to be processed through deposit money banks.
Key points from the circular include:
- Re-introduction of the “Willing Buyer, Willing Seller” model at the I&E Window.
- Operational rate for government-related transactions determined by the weighted average rate of the preceding day’s executed transactions.
- Proscription of trading limits on oversold FX positions, with permission to hedge short positions with OTC futures.
- Re-introduction of order-based two-way quotes with a bid-ask spread of N1.
- Reintroduction of Order Book for transparency and seamless execution of trades.
- Operational hours for trades from 9 a.m to 4 p.m, Nigeria time.
These changes suggest a significant shift in Nigeria’s FX market operations, indicating a relaxation of control over the naira, allowing it to float freely. A free-floating exchange rate implies that the government allows market forces to determine the exchange rate without intervention from the central bank. The CBN has hinted at providing further guidance on these operational changes to authorized dealers and the public in due course.