As of today, May 8, 2024, Findwhosabi News has obtained the official exchange rates for the Dollar to Naira in Nigeria, including rates from Bureau De Change (BDC) and the Central Bank of Nigeria (CBN).
Official Exchange Rate: According to data from the FMDQ Security Exchange, the Naira opened at ₦1399.37 per $1 on Monday, May 6, 2024, and closed at ₦1416.57 per $1 on Tuesday, May 7, 2024.
Black Market Rate: The Naira is currently trading as high as ₦1,360 per Dollar on the black market, despite the CBN’s announcement of unifying all segments of the foreign exchange market.
CBN Announcement: The Central Bank of Nigeria (CBN) announced the collapse of all FX windows into the Investors and Exporters (I&E) window, reintroducing the “Willing Buyer, Willing Seller” model. This move aims to streamline FX operations and ensure transparency.
Key Operational Changes:
- Applications for various FX needs, such as medicals, school fees, and SMEs, will continue to be processed through deposit money banks.
- The operational rate for government-related transactions will be the weighted average rate of the preceding day’s transactions at the I&E window.
- Trading limits on oversold FX positions are proscribed, with permission to hedge short positions with OTC futures.
- Order-based two-way quotes with bid-ask spread of N1 are reintroduced, along with the Order Book to ensure transparency.
- Operational hours for trades are from 9 a.m to 4 p.m, Nigeria time.
Implications: These operational changes signify Nigeria’s move towards a free-floating exchange rate regime, allowing market forces to determine the Naira’s external value without significant central bank intervention.
As the Naira continues to navigate the forex market dynamics, stakeholders and the general public await further guidance on the operational adjustments from the CBN.
Stay tuned for more updates on the exchange rate and forex market developments.