In a recent update, Findwhosabi News has acquired the latest official Dollar to Naira exchange rates for January 22, 2024, shedding light on the dynamics within Nigeria’s foreign exchange market. The comprehensive report includes data from both the Bureau De Change (BDC) rates and the Central Bank of Nigeria (CBN) rates.
The FMDQ Security Exchange, the official forex trading portal, revealed that the Naira initiated trading at ₦909.90 per US dollar on Friday, January 19, 2024, and concluded the day at ₦902.45 per $1. However, despite the official rates, the Naira is currently being traded at a high of ₦1,320 per Dollar in the black market.
Notably, the Central Bank of Nigeria (CBN) recently announced a unification of all segments within the foreign exchange market. The apex bank issued a circular on June 14, 2023, declaring the collapse of all FX windows into the Investors and Exporters (I&E) window. The circular also introduced several operational changes to foster transparency and efficiency in the market.
Key highlights of the circular include the reintroduction of the “Willing Buyer, Willing Seller” model at the I&E Window, the abolition of segmentation, and the implementation of a Central Counter Party (CCP) for clearing transactions. Additionally, trading limits on oversold FX positions have been proscribed, with permission granted to hedge short positions using Over-The-Counter (OTC) futures.
The operational hours for trades in the FX market have been set from 9 a.m to 4 p.m, Nigeria time. The central bank emphasized that further guidance on these operational changes would be communicated to authorized dealers and the public in due course.
These reforms signify a significant shift in Nigeria’s approach to its currency, indicating a move towards a more liberalized and free-floating exchange rate system. A free-floating exchange rate allows market forces to determine the value of the currency without interference from the central bank, reflecting a step towards a more market-driven foreign exchange environment in Nigeria.