In today’s financial report, Findwhosabi News brings you the latest updates on the Dollar to Naira exchange rates in Nigeria. Our sources have secured the official exchange rates, covering both the Bureau De Change (BDC) rates and the Central Bank of Nigeria (CBN) rates.
Official Exchange Rate According to FMDQ Security Exchange:
The official data released on the FMDQ Security Exchange, the designated forex trading portal, indicates that the Naira commenced trading at ₦908.76 per dollar on Thursday, January 18, 2024. The day concluded with the Naira closing at ₦902.08 per US dollar on the same day.
Despite this official rate, it is noteworthy that the Naira is currently trading as high as ₦1,320 per Dollar in the black market. This occurs despite the Central Bank of Nigeria’s recent announcement regarding the unification of all segments of the foreign exchange market.
CBN’s Measures for FX Market Unification:
The Central Bank of Nigeria, in a circular released on June 14, 2023, declared the abolishment of segmentation within the foreign exchange market. All segments are now consolidated into the Investors and Exporters (I&E) window. Specific applications for medicals, school fees, BTA/PTA, and SMEs are to be processed through deposit money banks.
The “Willing Buyer, Willing Seller” model has been reintroduced at the I&E Window, guided by the extant circular dated April 21, 2017. All eligible transactions can access foreign exchange at this window. Operational rates for government-related transactions will be the weighted average rate of the preceding day’s executed transactions at the I&E window, calculated to two (2) decimal places.
Other measures include the proscription of trading limits on oversold FX positions, permission to hedge short positions with OTC futures, reintroduction of order-based two-way quotes with a bid-ask spread of N1, and the reintroduction of the Order Book for transparency.
Operational hours for trades are set from 9 a.m to 4 p.m, Nigeria time. The apex bank has assured that further guidance on these operational changes will be communicated to authorized dealers and the general public in due course.
These changes signify a significant shift in Nigeria’s FX market operations, reflecting an easing of control over the Naira and the adoption of a free-floating exchange rate. In a free-floating exchange rate system, the government allows market forces to determine the exchange rate without intervention from the central bank.