Fidwhosabi News brings you the latest Dollar to Naira exchange rates for today, January 3, 2024. Fidwhosabi News has obtained exclusive information on the official dollar to naira exchange rate in Nigeria, shedding light on both the Bureau De Change (BDC) rate and rates provided by the Central Bank of Nigeria (CBN).
So, What’s the Official Exchange Rate for Dollar to Naira Today?
Based on data sourced from the FMDQ Security Exchange, the official forex trading portal, the Naira commenced trading at ₦911.67 per dollar on Friday, December 29, 2023, and concluded at ₦907.11 per $1 on the same day.
However, in contrast to the official rates, the Naira is currently trading at a higher rate of ₦1,175 per Dollar in the black market. This is happening despite the Central Bank of Nigeria’s (CBN) announcement of the unification of all segments of the foreign exchange market.
In a circular issued on Wednesday, June 14, 2023, the apex bank declared the abolition of segmentation, consolidating all segments into the Investors and Exporters (I&E) window. The circular also reintroduced the “Willing Buyer, Willing Seller” model at the I&E window and prescribed new operational guidelines.
Among the notable changes are:
- FX Market Unification: All segments are now collapsed into the Investors and Exporters (I&E) window.
- Operational Rate Determination: The operational rate for all government-related transactions will be the weighted average rate of the preceding day’s executed transactions at the I&E window.
- Proscription of Trading Limits: Trading limits on oversold FX positions are prohibited, with permission to hedge short positions with OTC futures. Overbought positions shall have zero limits.
- Order-Based Two-Way Quotes: Reintroduction of order-based two-way quotes, with a bid-ask spread of N1. All transactions shall be cleared by a Central Counter Party (CCP).
- Order Book Reintroduction: The reintroduction of the Order Book to ensure transparency of orders and seamless execution of trades.
- Operational Hours: The operational hours for trades shall be from 9 a.m to 4 p.m, Nigeria time.
The Central Bank indicated that further guidance on these operational changes would be communicated to authorized dealers and the general public in due course. These alterations signify a notable shift in Nigeria’s approach to its FX market, reflecting a move towards a more flexible exchange rate regime, allowing the Naira to float freely.