As of August 28, 2023, the official exchange rate for the Nigerian Naira (NGN) to the United States Dollar (USD) is as follows:
Opening rate: ₦768.83 per USD
Closing rate: ₦772.12 per USD
The Central Bank of Nigeria (CBN) has implemented changes to the foreign exchange (FX) market, unifying various FX windows into the Investors and Exporters (I&E) window. Some of the key points from the CBN’s changes to FX operations include:
Unification of Segments: All FX segments have been collapsed into the Investors and Exporters (I&E) window.
“Willing Buyer, Willing Seller” Model: The I&E window will operate based on the “Willing Buyer, Willing Seller” model, where eligible transactions can access foreign exchange at this window.
Operational Rate for Government Transactions: The operational rate for government-related transactions will be the weighted average rate of the preceding day’s executed transactions at the I&E window.
Trading Limits: Trading limits on oversold FX positions are proscribed, and short positions can be hedged with OTC futures. Overbought positions shall have zero limits.
Bid-Ask Spread: Order-based two-way quotes will be reintroduced with a bid-ask spread of N1.
Order Book: The Order Book will be reintroduced to ensure transparency of orders and seamless execution of trades.
Operational Hours: Trading hours will be from 9 a.m. to 4 p.m., Nigeria time.
These changes indicate that Nigeria has moved towards allowing the Naira to float freely in the FX market, meaning that the exchange rate will be determined by market forces rather than controlled by the central bank.