Naira X Tinubu
Newsonline Nigeria has obtained the official dollar to the naira exchange rate in Nigeria today, including the Bureau De Change (BDC) rate and CBN rates.
This Nigeria News platform understands that the dollar rates in the investors’ and exporters’ window of the official market and that of the Bureau De Change (BDC) window in the black market continue to converge.
At the close of trading on Monday, 26 June, the dollar was sold at N768.17/$1, which is 0.25 per cent or N2 lower than the N770.17/$1 rate offered on Friday.
This was disclosed by FMDQ Exchange, the official market aggregator. Data from the platform also showed that at some point during trading, the dollar rate peaked at N840/$1, while the USD was traded at the lowest rate of N465/$1.
As the dollar rate fell in the official market, the total value of the foreign exchange traded on Monday in the investors’ and exporters’ widow rose by 57.9 per cent.
This means buyers in the official market upped their demand or supply increased by $72.66 million to $198.13 million forex traded, from the $125.47 million reported on Friday.
Meanwhile, the dollar rate in the black market followed that of the investors’ and exporters’ window closely, as Naira Rates, a parallel market aggregator put the average rate at N764.3/$1, up from N768.4/$1.
While the naira gained against the dollar in the black market, the Nigerian currency fell against the British pound and the euro.
Data obtained from the Naira Rates disclosed that the naira to pound average rate was N993.7/£1, as the British currency appreciated by 0.08 per cent in value, from N992.9/£1.
In addition, the European currency, the euro, was sold at an average rate of N850//€1. This means the price of the euro inched higher by N1.2 kobo from N848.8/€1.
Newsonline Nigeria reports that the Central Bank of Nigeria (CBN) on Wednesday 14th June 2023 announced the unification of all segments of the forex exchange (FX) market.
In a circular, the CBN said all FX windows are now collapsed into the investors & exporters (I&E) window.
According to the apex bank, the move is part of a series of immediate changes to operations in the Nigerian FX market.
The statement read, “Abolishment of segmentation. All segments are now collapsed into the Investors and Exporters (I&E) window. Applications for medicals, school fees, BTA/PTA, and SMEs would continue to be processed through deposit money banks.
“Re-introduction of the “Willing Buyer, Willing Seller” model at the I&E Window. Operations in this window shall be guided by the extant circular on the establishment of the window, dated 21 April 2017, and referenced FM/DIR/CIR/GEN/08/007. All eligible transactions are permitted to access foreign exchange at this window.
“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, calculated to two (2) decimal places.
“Proscription of trading limits on oversold FX positions with permission to hedge short positions with OTC futures. Limits on overbought positions shall be zero.
“Re-introduction of order-based two-way quotes, with bid-ask spread of N1. All transactions shall be cleared by a Central Counter Party (CCP).
“Reintroduction of Order Book to ensure transparency of orders and seamless execution of trades.
“The operational hours of trades shall be from 9am to 4pm, Nigeria time.”
The apex noted that further guidance on the operational changes would be communicated to authorised dealers and the general public in due course.
The changes to operations in the country’s FX market implies that Nigeria has eased its control of the naira, allowing the local currency to freely float.
Meanwhile, a free-floating exchange rate occurs when a government allows the exchange rate to be determined purely by market forces and there is no attempt to ask the central bank to influence the external value of the exchange rate.
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