Black Market Naira Is Trading At Up To 1,210 Per US Dollar

According to data published on the official currency trading portal of the FMDQ Security Exchange, the Naira's exchange rate against the US dollar started at #798.75 per dollar on Wednesday, October 25, 2023, and closed at #801.10 for $1 on the same day.

Nevertheless, despite the Central Bank of Nigeria's (CBN) announcement of the unification of all foreign exchange market segments, the Naira is trading at as high as 1,210 per US dollar on the underground market.

On June 14, 2023, the apex bank announced in a circular that all foreign exchange windows have been merged into the investors and exporters (I&E) window.

The sentence said, "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 9 a.m to 4 pm, Nigeria time."

The supreme court stated that authorized dealers and the general public would receive more instructions regarding the operating modifications in due course.