FindWhosabi News presents the latest updates on Nigeria’s official dollar to naira exchange rates for today, encompassing both Bureau De Change (BDC) and Central Bank rates.
According to data from the FMDQ Security Exchange, the official forex trading portal, the naira commenced the day at ₦761.82 per dollar and concluded at ₦739.52 per $1 on August 18, 2023.
A significant shift in Nigeria’s forex exchange landscape was initiated by the Central Bank of Nigeria (CBN) on June 14, 2023. The announcement heralded the consolidation of various forex market segments into the Investors and Exporters (I&E) window.
Underlining the move towards a unified forex market, the CBN introduced a series of operational adjustments. The “Willing Buyer, Willing Seller” model made its return at the I&E Window, guided by an existing circular from April 21, 2017.
For government-related transactions, the operational rate now relies on the weighted average rate of the preceding day’s executed I&E window transactions, calculated to two decimal places. The announcement also abolished trading limits on oversold FX positions and opened doors to hedging short positions with Over-The-Counter (OTC) futures.
Transparency and efficiency were enhanced through the reintroduction of order-based two-way quotes, featuring a bid-ask spread of N1. All transactions are set to be cleared by a Central Counter Party (CCP), and the Order Book returns to streamline trade execution.
The CBN clarified that trades would take place between 9 a.m. and 4 p.m. Nigeria time.
These operational changes denote Nigeria’s forex market transformation, relinquishing control over the naira and embracing a free-floating exchange rate. This approach aligns with the principles of a free-floating exchange rate, leaving the exchange rate to market forces without central bank intervention.
As Nigeria adapts to these shifts, FindWhosabi News remains dedicated to delivering insights into the nation’s evolving forex landscape. Stay tuned for more updates as Nigeria charts its course towards economic stability and growth.