Today’s Dollar to Naira Exchange Rate: October 27, 2024

The exchange rate between the Naira and the US dollar has seen significant fluctuations recently, with data from the FMDQ Securities Exchange indicating that the Naira started at ₦1657.18 per $1 on Thursday, October 24, 2024, and ended at ₦1600.00 per $1 on Friday, October 25, 2024. In contrast, the black market rate for the Naira has surged to as high as ₦1,740 per dollar, despite the Central Bank of Nigeria (CBN) announcing a unification of all foreign exchange market segments.Continue Reading>>>

On June 14, 2023, the CBN issued a circular stating that all foreign exchange (FX) windows would be merged into the Investors and Exporters (I&E) window.The circular outlined several key points: it announced the elimination of segmentation, stating that all applications for medical expenses, school fees, and travel allowances would still be processed through commercial banks.

It also reinstated the “Willing Buyer, Willing Seller” model at the I&E window, where transactions would be guided by the existing circular from April 21, 2017, and all eligible transactions could access foreign exchange through this window.Additionally, it specified that the operational rate for government transactions would be based on the weighted average rate from the previous day’s executed transactions at the I&E window, calculated to two decimal places.Continue Reading>>>

Furthermore, the CBN removed trading limits on oversold FX positions, allowing for the hedging of short positions with OTC futures, while maintaining zero limits on overbought positions.The circular also reintroduced order-based two-way quotes with a bid-ask spread of ₦1, ensuring that all transactions would be processed by a Central Counter Party (CCP) for transparency and efficient trade execution.

Trading hours were set from 9 a.m. to 4 p.m. Nigerian time, with the CBN indicating that more details on the operational changes would be provided to authorized dealers and the public as needed.These changes suggest that Nigeria has relaxed its control over the Naira, allowing the currency to float according to market dynamics.A free-floating exchange rate means the government permits the exchange rate to be determined solely by market forces, without interference from the central bank regarding the currency’s external value.