In an exclusive report, Findwhosabi News has obtained the latest Dollar to Naira exchange rates for today, December 28, 2023. This includes both the Bureau De Change (BDC) rate and Central Bank of Nigeria (CBN) rates.
Official Exchange Rate for Dollar to Naira Today
According to data released by the FMDQ Security Exchange, the official forex trading portal, the Naira opened at ₦925.00 per dollar on Wednesday, December 27, 2023, and closed at ₦872.59 per $1 on the same day.
However, despite the official rates, the Naira is currently trading as high as ₦1,175 per Dollar on the black market. This is noteworthy, especially in light of the Central Bank of Nigeria’s (CBN) recent announcement regarding the unification of all segments of the foreign exchange market.
The CBN, in a circular dated June 14, 2023, declared the abolishment of segmentation, collapsing all segments into the Investors and Exporters (I&E) window. Notably, applications for medicals, school fees, BTA/PTA, and SMEs would continue to be processed through deposit money banks.
The circular also introduced the “Willing Buyer, Willing Seller” model at the I&E Window and prescribed the operational rate for all government-related transactions.
Additionally, the CBN proscribed trading limits on oversold FX positions, allowing hedging of short positions with OTC futures. The reintroduction of order-based two-way quotes, with a bid-ask spread of N1, was also announced. All transactions are to be cleared by a Central Counter Party (CCP), and an Order Book has been reintroduced for transparency and seamless execution of trades.
The operational hours of trades, according to the circular, are from 9 a.m to 4 p.m, Nigeria time. Further guidance on these operational changes is expected to be communicated to authorized dealers and the general public in due course.
These significant changes in the country’s FX market suggest a shift in Nigeria’s approach, indicating a move towards a free-floating exchange rate. A free-floating exchange rate occurs when a government allows the exchange rate to be determined purely by market forces, without intervention from the central bank, signaling increased flexibility in the valuation of the local currency.