In the latest update on the currency market, Findwhosabi News has acquired the official exchange rates for the Dollar to Naira, revealing significant variations in rates across different platforms.
The official exchange rate, sourced from the FMDQ Security Exchange, indicates that the Naira commenced trading at ₦935.62 per dollar on Friday, January 12, 2024, and concluded at ₦890.54 per $1 on the same day. This data highlights the volatility in the exchange market.
However, a notable disparity emerges as the black market records the Naira trading as high as ₦1,175 per Dollar. This inconsistency persists despite the Central Bank of Nigeria’s (CBN) announcement regarding the unification of 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 outlined several key operational changes, including the re-introduction of the “Willing Buyer, Willing Seller” model at the I&E Window. This model allows eligible transactions to access foreign exchange at the window’s operational rate.
Additionally, the circular abolished trading limits on oversold FX positions, permitting the hedging of short positions with Over-the-Counter (OTC) futures. It also reintroduced order-based two-way quotes with a bid-ask spread of N1, emphasizing transparency and seamless execution of trades. The operational hours were set from 9 a.m to 4 p.m, Nigeria time.
The CBN’s move signifies a shift in the country’s foreign exchange market, indicating a relaxation of control over the Naira. The adoption of a free-floating exchange rate implies that the government allows market forces to solely determine the exchange rate, without intervention from the central bank.
Further guidance on the operational changes is expected to be communicated to authorized dealers and the public in the coming days. As Nigeria embraces a more flexible approach to its currency, stakeholders will be closely monitoring the impact on the Naira’s value and the overall stability of the foreign exchange market.