Naira to USD Today 24 Jan 2024

Findwhosabi News brings you the latest on the Dollar to Naira exchange rate for today, January 24, 2024. We have obtained official information on the Naira’s value against the US Dollar, including rates from Bureau De Change (BDC) and the Central Bank of Nigeria (CBN).

Official Exchange Rate Highlights:

As per data released on the FMDQ Security Exchange, the official forex trading portal, the Naira began the day at ₦989.92 per dollar and closed at ₦878.61 per $1 on Tuesday, January 23, 2024.

Discrepancy in Black Market:

Despite the Central Bank’s announcement of the unification of all foreign exchange market segments, the Naira is currently trading as high as ₦1,360 per Dollar at the black market.

In a circular dated June 14, 2023, the CBN abolished segmentation, consolidating all segments into the Investors and Exporters (I&E) window. Transactions for medicals, school fees, BTA/PTA, and SMEs continued through deposit money banks.

Operational Changes:

• Willing Buyer, Willing Seller Model: The CBN reintroduced this model at the I&E Window, guided by the circular dated April 21, 2017.
• Operational Rate: Government-related transactions shall use the weighted average rate of the preceding day’s executed transactions at the I&E window.
• Proscription of Trading Limits: Oversold FX positions can be hedged with OTC futures, while limits on overbought positions are zero.
• Order-Based Two-Way Quotes: Reintroduced with a bid-ask spread of N1, all transactions cleared by a Central Counter Party (CCP).
• Order Book Reintroduction: Ensures transparency of orders and seamless execution of trades.
• Operational Hours: Trading hours set from 9 a.m to 4 p.m, Nigeria time.

Further guidance on operational changes will be communicated to authorized dealers and the public in due course.

These changes signal a significant shift in Nigeria’s control of the Naira, indicating a move towards a free-floating exchange rate. In a free-floating exchange rate system, the government allows market forces to determine the exchange rate without central bank intervention.

Stay tuned with Findwhosabi News for ongoing updates on the financial landscape.