In a recent report obtained by Findwhosabi News, the official exchange rate for the Dollar to Naira in Nigeria has been revealed, encompassing rates from both Bureau De Change (BDC) and Central Bank of Nigeria (CBN).
Official Exchange Rate Overview
According to data from the FMDQ Security Exchange, the official forex trading portal, the Naira opened at ₦1519.46 per dollar on February 15, 2024, and closed at ₦1537.96 per $1 on February 16, 2024.
Black Market Discrepancy
Despite the Central Bank’s announcement of the unification of all foreign exchange market segments, the Naira is currently trading as high as ₦1,590 per Dollar in the black market.
CBN’s Unification Efforts
The Central Bank of Nigeria, in a circular dated June 14, 2023, abolished segmentation in the forex market, collapsing all segments into the Investors and Exporters (I&E) window. Notably, the reintroduction of the “Willing Buyer, Willing Seller” model at the I&E Window has been emphasized.
Operational Changes
Several operational changes were outlined in the circular, including the abolishment of trading limits on oversold FX positions, reintroduction of order-based two-way quotes with a bid-ask spread of N1, and the reintroduction of the Order Book for transparency.
Free-Floating Exchange Rate
The modifications to the FX market signify Nigeria’s move towards a free-floating exchange rate system, allowing the Naira to be determined by market forces without central bank intervention. The operational hours for trades have been specified as 9 a.m to 4 p.m, Nigeria time.
The Central Bank has assured that further guidance on these operational changes will be communicated to authorized dealers and the general public in due course.
These developments indicate a shift in Nigeria’s approach, reflecting a more liberal stance on the Naira’s exchange rate, aligning with the principles of a free-floating system.
Findwhosabi News will continue to provide updates on the evolving financial landscape in Nigeria.