Let’s distill the essential information regarding the Dollar to Naira exchange rate and recent policy updates from the Central Bank of Nigeria (CBN).
Current Exchange Rates:
- Official Rate: The Naira opened at ₦1471.42 per $1 on June 13 and closed at ₦1482.72 per $1 on June 14, 2024, according to the FMDQ Security Exchange.
- Black Market Rate: Trading at approximately ₦1,470 per Dollar.
CBN Policy Changes:
- Unified FX Market: All forex segments are now consolidated into the Investors & Exporters (I&E) window. Transactions for medicals, school fees, BTA/PTA, and SMEs continue through banks.
- Willing Buyer, Willing Seller Model: Reintroduced to guide operations at the I&E Window, allowing eligible transactions to access forex.
- Government Transaction Rate: Based on the previous day’s weighted average rate at the I&E window.
- Trading Limits Adjusted: No limits on oversold positions, with permission to hedge short positions using OTC futures. Zero limits on overbought positions.
- Transparent Trading: Reintroduction of order-based two-way quotes and order book, ensuring transparency and seamless trade execution.
- Operational Hours: Trades will occur from 9 a.m. to 4 p.m., Nigeria time.
Free-Floating Exchange Rate:
- Market-Determined Value: Nigeria is transitioning to a system where the Naira’s value is determined by market forces, enhancing stability and reflecting true currency value.
