In a recent development, Gatekeepers News has acquired the latest updates on the Dollar to Naira exchange rates for today, shedding light on significant shifts in the foreign exchange landscape in Nigeria.
The official exchange rate between the Naira and the US dollar, sourced from data released on the FMDQ Security Exchange, reveals that the Naira commenced trading at ₦884.22 per dollar on Tuesday, January 16, 2024. The day concluded with the Naira closing at ₦878.57 per $1.
Contrary to these official rates, the black market is witnessing a surge, with the Naira trading as high as ₦1,320 per Dollar. This surge comes even as the Central Bank of Nigeria (CBN) recently announced the consolidation of all segments of the foreign exchange market.
The apex bank’s circular on June 14, 2023, disclosed the collapse of all FX windows 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 abolition of trading limits on oversold FX positions. The operational rate for government-related transactions now aligns with the weighted average rate of the preceding day’s executed transactions at the I&E window.
Additionally, the reintroduction of order-based two-way quotes, bid-ask spread of N1, and the Order Book aims to enhance transparency in trade execution. The operational hours for trades are now set from 9 a.m to 4 p.m, Nigeria time.
The CBN emphasizes that further guidance on these operational changes will be communicated to authorized dealers and the general public. The adjustments to the country’s FX market operations signify a loosening of control over the Naira, allowing the local currency to freely fluctuate in response to market forces. This move towards a free-floating exchange rate underscores the government’s shift towards a more market-driven foreign exchange system. Stay tuned for more updates on this evolving situation.