As of August 16, 2023, the official exchange rate between the Nigerian Naira (NGN) and the US Dollar (USD) was as follows:
- Opening Rate: ₦781.66 per USD
- Closing Rate: ₦759.86 per USD
It’s worth noting that the Central Bank of Nigeria (CBN) had previously announced the unification of all segments of the foreign exchange (forex) market. This included collapsing all forex windows into the Investors and Exporters (I&E) window. The move was part of a series of changes to operations in the Nigerian forex market.
As a result of these changes, the exchange rate is now influenced by market forces, and the operational hours of forex trades are from 9 am to 4 pm Nigeria time. The changes also include the reintroduction of the “Willing Buyer, Willing Seller” model at the I&E window, order-based two-way quotes, and the use of an Order Book to ensure transparency in orders and seamless trade execution.
This shift indicates that Nigeria has eased its control over the Naira’s exchange rate, allowing it to be determined by market dynamics rather than strict central bank intervention. This approach is known as a free-floating exchange rate regime.