In a comprehensive update on the foreign exchange landscape, Findwhosabi News brings you the latest Dollar to Naira exchange rates for today, January 17, 2024, revealing significant variations in the market.
Official Exchange Rate:
According to data released by the FMDQ Security Exchange, the official forex trading portal, the Naira exhibited a mixed performance against the US dollar. Opening at ₦884.22 per dollar, the Naira closed at ₦878.57 per $1 on Tuesday, January 16, 2024.
Market Discrepancies:
Despite efforts by the Central Bank of Nigeria (CBN) to unify all segments of the foreign exchange market, the Naira is currently trading at ₦1,275 per Dollar in the black market. This deviation raises questions about the effectiveness of the recent policy changes implemented by the apex bank.
CBN’s Policy Changes:
In a circular dated June 14, 2023, the CBN announced the abolition of segmentation in the foreign exchange market. All FX windows were consolidated into the Investors and Exporters (I&E) window. Noteworthy changes include the re-introduction of the “Willing Buyer, Willing Seller” model at the I&E window and the proscription of trading limits on oversold FX positions.
Operational Adjustments:
The CBN has reintroduced order-based two-way quotes with a bid-ask spread of N1 and reinstated the Order Book to enhance transparency in orders and trade execution. The operational hours for trades are from 9 a.m to 4 p.m, Nigeria time.
Implications for Naira:
These operational adjustments signify a notable shift in Nigeria’s control of the Naira, moving towards a free-floating exchange rate system. A free-floating exchange rate allows market forces to determine the exchange rate without central bank interference.
The CBN emphasized that further guidance on these operational changes would be communicated to authorized dealers and the public in due course. Findwhosabi News will continue to monitor and provide updates on the evolving foreign exchange landscape in Nigeria.