In a monumental shift for Nigeria’s economic landscape, today marks a pivotal moment as the official exchange rate between the dollar and the naira takes center stage. Gatekeepers News brings you the exclusive scoop on the latest developments shaping the forex markets.
According to data sourced from the FMDQ Security Exchange, the official forex trading portal, the naira commenced its journey at an impressive ₦1609.14 per dollar on Wednesday, March 13, 2024. As the day unfolded, the naira held firm, closing at a formidable ₦1608.98 per $1 on Thursday, March 14, 2024.
However, the narrative takes an intriguing turn as the black market sees the naira trading as high as ₦1,600 per dollar, despite the Central Bank of Nigeria (CBN) announcing a seismic unification of all forex market segments.
In a groundbreaking circular dated Wednesday, June 14, 2023, the apex bank declared the collapse of all FX windows into the Investors and Exporters (I&E) window. This bold move reintroduces the “Willing Buyer, Willing Seller” model, ushering in an era of transparent and market-driven forex transactions.
Key highlights from the circular include:
- Abolishment of segmentation, consolidating all segments into the I&E window.
- Reintroduction of the “Willing Buyer, Willing Seller” model at the I&E Window.
- Proscription of trading limits on oversold FX positions, with permission to hedge short positions with OTC futures.
- Reintroduction of order-based two-way quotes with a bid-ask spread of N1, ensuring transparency and efficiency.
- Operational hours extended from 9 a.m to 4 p.m, Nigeria time.
This monumental shift signals Nigeria’s embrace of a free-floating exchange rate regime, empowering market forces to determine the external value of the naira. With further guidance promised to authorized dealers and the public, the stage is set for a new era of forex market dynamics.
As the nation navigates these uncharted waters, the implications of this historic transition reverberate far and wide. Stay tuned as Gatekeepers News continues to unravel the intricacies of Nigeria’s evolving economic landscape, where every twist and turn shapes the destiny of millions.