Naira to USD: Trading Today 1 Dec 2023

Findwhosabi News has obtained the official Dollar to Naira exchange rate for today, December 1, 2023, including both Bureau De Change (BDC) rates and Central Bank of Nigeria (CBN) rates.

According to data from the FMDQ Security Exchange, the official forex trading portal, the Naira opened at ₦803.50 per dollar on Thursday, November 30, 2023, and closed at ₦832.32 per $1 on the same day.

However, it’s important to note that the Naira is currently trading as high as ₦1,155 per Dollar in the black market, despite the Central Bank of Nigeria’s (CBN) announcement regarding the unification of all segments of the foreign exchange market.

The CBN, in a circular dated June 14, 2023, abolished segmentation in the FX market, collapsing all segments into the Investors and Exporters (I&E) window. Key points from the circular include:

1. Abolishment of Segmentation: All FX segments are now collapsed into the Investors and Exporters (I&E) window. Certain transactions like medicals, school fees, BTA/PTA, and SMEs would still be processed through deposit money banks.
2. Willing Buyer, Willing Seller Model: The reintroduction of the “Willing Buyer, Willing Seller” model at the I&E Window. Operations in this window shall follow the extant circular dated April 21, 2017.
3. Operational Rate for Government Transactions: The operational rate for all government-related transactions shall be the weighted average rate of the preceding day’s executed transactions at the I&E window.
4. Trading Limits on FX Positions: Proscription of trading limits on oversold FX positions with permission to hedge short positions with OTC futures. Limits on overbought positions shall be zero.
5. Order-Based Two-Way Quotes: Reintroduction of order-based two-way quotes, with a bid-ask spread of N1. All transactions shall be cleared by a Central Counter Party (CCP).
6. Order Book for Transparency: Reintroduction of Order Book to ensure transparency of orders and seamless execution of trades.
7. Operational Hours: The operational hours of trades shall be from 9 a.m to 4 p.m, Nigeria time.

The CBN emphasized that further guidance on operational changes would be communicated to authorized dealers and the general public in due course. The adjustments suggest a move towards a free-floating exchange rate, allowing market forces to determine the Naira’s external value without significant central bank influence.