In a recent update, Findwhosabi News has obtained the latest Dollar to Naira exchange rates for today, January 1, 2024, shedding light on the official rates and the discrepancies observed in the Bureau De Change (BDC) rates and Central Bank of Nigeria (CBN) rates.
Official Exchange Rate: According to data released on the FMDQ Security Exchange, the official forex trading portal reveals that the Naira opened at ₦911.67 per dollar on December 29, 2023, and closed at ₦907.11 per $1 on the same day. This official rate provides a benchmark for understanding the dynamics of the Naira against the US dollar.
Discrepancies in the Market: Despite the official rates, the Naira is trading as high as ₦1,175 per Dollar in the black market. This contrast raises questions, especially considering the Central Bank of Nigeria’s recent announcement regarding the unification of all segments of the foreign exchange market.
CBN’s Unified Approach: The Central Bank of Nigeria, in a circular dated June 14, 2023, declared the collapse of all FX segments into the Investors and Exporters (I&E) window. This move aimed to streamline the foreign exchange market and introduced the “Willing Buyer, Willing Seller” model at the I&E Window. The operational changes also include the proscription of trading limits, re-introduction of order-based two-way quotes, and the reintroduction of the Order Book for transparency in transactions.
The operational hours for trades are now set from 9 a.m to 4 p.m, Nigeria time. Further guidance on these changes is expected to be communicated to authorized dealers and the general public, signaling a significant shift in Nigeria’s approach to the Naira’s control.
The alterations to the FX market operations suggest that Nigeria has taken steps towards a more flexible exchange rate system, allowing the Naira to float freely based on market forces. A free-floating exchange rate signifies that the government permits the exchange rate to be determined by market dynamics without intervention from the central bank.
Findwhosabi News will continue to monitor and report on developments in the foreign exchange market to keep our readers informed about the latest trends and fluctuations in currency exchange rates.