Today’s Dollar to Naira Exchange Rates Revealed: Unification Amidst Market Fluctuations
In the latest update on currency exchange rates, Findwhosabi News has accessed the official Dollar to Naira exchange rates in Nigeria for January 10, 2024, encompassing data from both Bureau De Change (BDC) and Central Bank of Nigeria (CBN) sources.
As per the information provided by the FMDQ Security Exchange, the official forex trading portal, the Naira initiated trading at ₦922.22 per dollar on Tuesday, January 09, 2024. The day concluded with the Naira at ₦1089.51 per $1.
Contrastingly, the black market is witnessing a surge with the Naira reaching as high as ₦1,245 per Dollar. This is despite the Central Bank of Nigeria’s (CBN) recent announcement to unify all segments of the foreign exchange market.
The CBN, in a circular issued on June 14, 2023, declared the collapse of all FX windows into the Investors and Exporters (I&E) window. The statement highlighted the reintroduction of the “Willing Buyer, Willing Seller” model at the I&E Window, emphasizing that eligible transactions can access foreign exchange through this channel.
The operational rate for government-related transactions would be the weighted average rate of the previous day’s executed transactions at the I&E window, calculated to two decimal places. Additionally, the CBN introduced measures such as the proscription of trading limits on oversold FX positions, the reintroduction of order-based two-way quotes with a bid-ask spread of N1, and the reintroduction of an Order Book to ensure transparency and seamless execution of trades.
The operational hours for trades are specified to be from 9 a.m to 4 p.m, Nigeria time. The CBN assured that further guidance on operational changes would be communicated to authorized dealers and the public in due course.
These changes signify a notable shift in Nigeria’s FX market operations, indicating a more relaxed control over the Naira, allowing it to float freely. A free-floating exchange rate means that the government permits the exchange rate to be determined solely by market forces, with no intervention from the central bank to influence its external value.