By Ojukwu Emmanuel Chiadikaobi
The official exchange rate, as per the FMDQ Security Exchange, reveals that the Naira opened at ₦989.92 per dollar on January 23, 2024, and closed at ₦878.61 per $1 on the same day. Notably, the Naira’s current rate at the black market is ₦1,360 per Dollar, despite the CBN’s announcement of unifying all segments of the foreign exchange market.
The CBN’s circular on June 14, 2023, consolidated all FX windows into the Investors and Exporters (I&E) window. It reintroduced the “Willing Buyer, Willing Seller” model at the I&E Window and prescribed operational guidelines, including a bid-ask spread of N1 and transparent order book reintroduction.
The operational rate for government-related transactions at the I&E window is now based on the preceding day’s weighted average rate. The CBN also removed trading limits on oversold FX positions, allowing short positions to hedge with OTC futures. Order-based two-way quotes with a bid-ask spread of N1 and operational hours from 9 a.m to 4 p.m were reintroduced.
These changes signify Nigeria’s move towards a free-floating exchange rate, relinquishing control over the Naira’s value to market forces. The apex bank emphasizes that further guidance on operational changes will be communicated to authorized dealers and the public.