Forex: Dollar To Naira Trading For Today 6 July 2023

Findwhosabi News has acquired the verified exchange rate for the Nigerian Naira against the US dollar today, encompassing both the Bureau De Change (BDC) rate and the rates provided by the Central Bank of Nigeria (CBN).

Official Dollar to Naira Exchange Rate Today

Based on the information obtained from the FMDQ Security Exchange, the designated forex trading portal, the exchange rate for the Naira against the US dollar reveals that the Naira commenced the day at ₦764.31 per dollar on Wednesday, July 5, 2023. By the end of the day, it closed at ₦742.31 per US dollar on Wednesday, July 5, 2023.

On June 14, 2023, the Central Bank of Nigeria (CBN) made a significant announcement regarding the unification of the forex exchange (FX) market. The CBN issued a circular stating that all FX windows have been merged into the investors & exporters (I&E) window. This move is part of immediate changes implemented by the apex bank to enhance operations in the Nigerian FX market.

According to the CBN, the key changes are as follows:

1. Abolishment of segmentation: All market segments have been collapsed into the Investors and Exporters (I&E) window. However, specific applications such as medicals, school fees, BTA/PTA, and SMEs will continue to be processed through deposit money banks.
2. Re-introduction of the “Willing Buyer, Willing Seller” model: The I&E window will operate based on the extant circular from April 21, 2017, and referenced FM/DIR/CIR/GEN/08/007. Eligible transactions can access foreign exchange at this window.
3. Operational rate for government-related 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 decimal places.
4. Proscription of trading limits on oversold FX positions: Permission to hedge short positions with OTC futures will be granted, while overbought positions will have a zero limit.
5. Re-introduction of order-based two-way quotes: Bid-ask spread will be fixed at N1. All transactions will be cleared by a Central Counter Party (CCP).
6. Reintroduction of Order Book: An Order Book will be implemented to ensure transparency of orders and seamless trade execution.
7. Revised operational hours: Trading hours will be from 9 am to 4 pm, Nigeria time.

The CBN emphasized that further guidance on these operational changes will be communicated to authorized dealers and the public in due course.

These changes indicate a shift towards a free-floating exchange rate regime in Nigeria. Under this system, the value of the local currency, the naira, will be determined solely by market forces without intervention from the central bank.

By unifying the FX market and implementing these reforms, Nigeria aims to foster a more transparent and efficient foreign exchange system.