Currency Dynamics Revealed in Official and Black Market Rates
Findwhosabi News, January 26, 2024 – Today’s Dollar to Naira exchange rates in Nigeria exhibit a complex picture, with disparities observed between official channels and the black market. Findwhosabi News has obtained comprehensive data, including the Bureau De Change (BDC) rates and Central Bank of Nigeria (CBN) rates.
The official exchange rate, as per data released on the FMDQ Security Exchange, reveals that the Naira began the day at ₦929.18 per dollar on Thursday, January 25, 2024. By the day’s end, it closed at ₦900.96 per $1. These figures highlight the official stance on the currency’s valuation.
However, a contrasting scenario unfolds in the black market, where the Naira is trading as high as ₦1,415 per Dollar. This discrepancy persists despite the CBN’s announcement of the unification of all segments of the foreign exchange market.
The CBN’s directive, issued in a circular on June 14, 2023, declared the collapse of all FX windows into the Investors and Exporters (I&E) window. It reintroduced the “Willing Buyer, Willing Seller” model at the I&E Window, emphasizing that eligible transactions could access foreign exchange at this window.
Key operational changes include the proscription of trading limits on oversold FX positions and the reintroduction of order-based two-way quotes with a bid-ask spread of N1. Furthermore, the reestablishment of the Order Book aims to enhance transparency in orders and facilitate seamless trade execution.
The operational hours for trades have been set from 9 a.m to 4 p.m, Nigeria time. The apex bank emphasized that further guidance on operational changes would be communicated to authorized dealers and the public in due course.
These changes mark a significant shift in Nigeria’s FX market operations, indicating a more liberalized approach to the Naira’s valuation. The move towards a free-floating exchange rate underscores the government’s decision to allow market forces to dictate the currency’s external value, reducing direct interventions by the central bank.