As of today, December 4, 2023, Findwhosabi News has obtained the official exchange rates for the Dollar to Naira in Nigeria, encompassing both the Bureau De Change (BDC) rate and Central Bank of Nigeria (CBN) rates.
Official Exchange Rate (FMDQ Security Exchange): According to data from the FMDQ Security Exchange, the official forex trading portal, the exchange rate between the Naira and the US Dollar opened at ₦815.00 per dollar on Friday, December 01, 2023. The closing rate for the same day was ₦927.19 per $1.
Black Market Rate: Contrary to the official rates, the Naira is trading as high as ₦1,155 per Dollar in the black market. This is notable despite the Central Bank of Nigeria (CBN) announcing the unification of all segments of the foreign exchange market.
The CBN, through a circular on June 14, 2023, declared the abolition of segmentation in the FX market. All segments were collapsed into the Investors and Exporters (I&E) window, with the reintroduction of the “Willing Buyer, Willing Seller” model. The operational rate for government-related transactions is determined by the weighted average rate of the preceding day’s executed transactions at the I&E window.
Further operational changes 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 an Order Book for transparency.
The operational hours for trades are set from 9 a.m to 4 p.m, Nigeria time. The adjustments signify a shift towards a free-floating exchange rate, allowing market forces to determine the exchange rate with minimal intervention from the central bank.
These developments mark a significant change in Nigeria’s FX market, indicating a more liberalized approach to currency exchange and easing control over the Naira’s value. It aligns with the government’s efforts to foster transparency and efficiency in the foreign exchange market.