In a recent update on the currency market, Findwhosabi News has obtained the official Dollar to Naira exchange rates for today, January 19, 2024, encompassing both the Bureau De Change (BDC) rates and those set by the Central Bank of Nigeria (CBN).
The official exchange rate between the Naira and the US Dollar, as reported by the FMDQ Security Exchange, indicates that the Naira commenced trading at ₦908.76 per dollar on Thursday, January 18, 2024, and concluded at ₦902.08 per $1 on the same day.
Despite this official rate, the black market is experiencing a surge, with the Naira trading as high as ₦1,320 per Dollar. This is in contrast to the CBN’s announcement on June 14, 2023, regarding the unification of all segments within the foreign exchange market.
According to the circular issued by the apex bank, all FX windows were collapsed into the Investors and Exporters (I&E) window. The operational changes include the re-introduction of the “Willing Buyer, Willing Seller” model at the I&E Window, where eligible transactions can access foreign exchange. The operational rate for government-related transactions will be the weighted average rate of the preceding day’s executed transactions at the I&E window.
The circular further outlined the proscription of trading limits on oversold FX positions and the reintroduction of order-based two-way quotes, promoting transparency and a bid-ask spread of N1. The operational hours for trades have been set from 9 a.m to 4 p.m, Nigeria time.
These alterations in the FX market suggest a shift in Nigeria’s control of the Naira, indicating a move towards a free-floating exchange rate. A free-floating exchange rate allows market forces to solely determine the exchange rate, with no intervention from the central bank to influence its external value. The CBN noted that additional guidance on these operational changes will be communicated to authorized dealers and the general public in due course.