FindWhosabi has obtained the latest official exchange rate for the US Dollar to the Nigerian Naira (USD to NGN) for today, September 8, 2023. We have gathered information on the Bureau De Change (BDC) rate and the Central Bank of Nigeria (CBN) rates for your reference.
Official Dollar to Naira Exchange Rate Today
According to data released by the FMDQ Security Exchange, the official forex trading portal, the Naira started the day at ₦774.74 per US dollar on Thursday, September 7, 2023, and closed at ₦736.62 per $1 on the same day. This reflects the official exchange rate for Dollar to Naira on this specific date.
CBN’s Unification of Forex Exchange Market
On June 14, 2023, the Central Bank of Nigeria (CBN) made a significant announcement regarding the unification of all segments of the foreign exchange (FX) market. In a circular, the CBN stated that all FX windows have been consolidated into the Investors & Exporters (I&E) window. This move is part of a series of immediate changes to operations in the Nigerian FX market.
The CBN’s statement outlined the following key changes:
- Abolishment of Segmentation: All FX segments are now merged into the Investors and Exporters (I&E) window. Applications for medical expenses, school fees, Business Travel Allowance (BTA)/Personal Travel Allowance (PTA), and Small and Medium Enterprises (SMEs) transactions will continue to be processed through deposit money banks.
- Re-introduction of “Willing Buyer, Willing Seller” Model: The I&E Window will operate based on the “Willing Buyer, Willing Seller” model. All eligible transactions are permitted to access foreign exchange at this window.
- Operational Rate for Government Transactions: The operational rate for all government-related transactions will 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: There will be no trading limits on oversold FX positions, and permission to hedge short positions with Over-The-Counter (OTC) futures is granted. However, limits on overbought positions shall be zero.
- Re-introduction of Order-Based Two-Way Quotes: Two-way quotes with a bid-ask spread of N1 will be reintroduced. All transactions will be cleared by a Central Counter Party (CCP).
- Reintroduction of Order Book: An Order Book will be reintroduced to ensure transparency of orders and seamless execution of trades.
- Operational Hours: The operational hours for trades will be from 9 a.m to 4 p.m, Nigeria time.
The CBN noted that further guidance on these operational changes will be communicated to authorized dealers and the general public in due course.
These changes to operations in Nigeria’s FX market signify a shift towards a more flexible exchange rate system, allowing the Naira to float freely. In a free-floating exchange rate system, the government refrains from actively intervening in the exchange rate determination, letting market forces dictate the currency’s external value. This move has implications for the Nigerian economy and its foreign exchange markets.