In an exclusive report, Findwhosabi News presents the latest updates on the Dollar to Naira exchange rates in Nigeria, shedding light on the various rates prevalent in the market today.
The official exchange rate between the Naira and the US dollar, as reported by the FMDQ Security Exchange, the country’s official forex trading portal, reveals that the Naira began at ₦911.67 per dollar on Friday, December 29, 2023, and concluded at ₦907.11 per $1 on the same day.
However, despite the Central Bank of Nigeria’s (CBN) recent announcement of unifying all segments of the foreign exchange market, the Naira is currently trading at a staggering ₦1,175 per Dollar in the black market.
This move towards unification was initiated by the CBN through a circular issued on June 14, 2023, consolidating all FX windows into the Investors and Exporters (I&E) window. The circular outlined various changes to the operational model, including the reintroduction of the “Willing Buyer, Willing Seller” approach at the I&E Window and the abolition of trading limits on oversold FX positions.
Furthermore, the CBN specified that the operational rate for all government-related transactions would be the weighted average rate of the preceding day’s executed transactions at the I&E window. The introduction of order-based two-way quotes with a bid-ask spread of N1, reintroduction of the Order Book for transparent order processing, and the operational hours from 9 a.m to 4 p.m, Nigeria time, were also highlighted in the circular.
This significant shift in operational strategies implies that Nigeria has relaxed its control over the Naira, adopting a free-floating exchange rate system. A free-floating exchange rate allows market forces to determine the exchange rate, without intervention from the central bank.
The apex bank assured that further guidance on these operational changes would be communicated to authorized dealers and the general public in the near future, as the nation navigates through this revamped landscape of foreign exchange dynamics.