In a recent development, Findwhosabi News has acquired the latest Dollar to Naira exchange rates for today, January 29, 2024. The official rates from both Bureau De Change (BDC) and Central Bank of Nigeria (CBN) have been obtained, shedding light on the current state of the foreign exchange market in the country.
As per data released on the FMDQ Security Exchange, the official forex trading portal, the Naira opened at ₦824.58 per dollar on Friday, January 26, 2024, and closed at ₦891.90 per $1 on the same day.
However, a notable discrepancy exists as the Naira is trading as high as ₦1,425 per Dollar on the black market. This occurs despite the recent announcement by the CBN regarding the unification of all segments of the foreign exchange market.
In a circular released on June 14, 2023, the CBN declared the abolishment of segmentation, collapsing all segments into the Investors and Exporters (I&E) window. Notably, transactions for medicals, school fees, BTA/PTA, and SMEs continued to be processed through deposit money banks.
The CBN reintroduced the “Willing Buyer, Willing Seller” model at the I&E Window, emphasizing that operations in this window would follow established guidelines. The operational rate for government-related transactions would be the weighted average rate of the preceding day’s executed transactions at the I&E window.
Furthermore, the circular outlined the proscription of trading limits on oversold FX positions, with permission to hedge short positions with OTC futures. Limits on overbought positions were set at zero. The reintroduction of order-based two-way quotes, with a bid-ask spread of N1, aimed at enhancing transparency, was also highlighted.
Additionally, the CBN reinstated the Order Book to ensure the transparency of orders and seamless execution of trades. Operational hours for trades were specified to be from 9 a.m to 4 p.m, Nigeria time. The apex bank assured further guidance on operational changes would be communicated to authorized dealers and the public.
These changes signify a notable shift in Nigeria’s FX market operations, indicating a relaxation of control over the Naira and allowing the local currency to freely float based on market forces. The move towards a free-floating exchange rate reflects the government’s commitment to embracing market dynamics in determining currency values.