The official exchange rate between the United States Dollar (USD) and the Nigerian Naira (NGN) for today, October 10, 2023, has been released by the FMDQ Security Exchange, the official forex trading portal.
According to the data provided by FMDQ Security Exchange, the Naira began the trading day at ₦781.99 per US dollar and concluded at ₦773.54 per US dollar on Monday, October 9, 2023.
However, it is important to note that despite the Central Bank of Nigeria’s (CBN) announcement of the unification of all segments of the foreign exchange market, the Naira is currently trading as high as ₦1000 per US Dollar in the black market.
The CBN, in a circular issued on June 14, 2023, abolished segmentation in the foreign exchange market. All FX windows were consolidated into the Investors and Exporters (I&E) window. Some key highlights from the circular include:
- Reintroduction of the “Willing Buyer, Willing Seller” model at the I&E Window.
- Government-related transactions will use the weighted average rate of the preceding day’s executed transactions at the I&E window.
- Proscription of trading limits on oversold FX positions with permission to hedge short positions with OTC futures.
- Reintroduction of order-based two-way quotes, with a bid-ask spread of N1.
- Reintroduction of the Order Book for transparency in orders and seamless trade execution.
- Operational hours for trades are from 9 a.m. to 4 p.m., Nigeria time.
This shift in FX market operations implies that Nigeria has adopted a more flexible exchange rate regime, allowing the Naira’s value to be primarily determined by market forces, without significant intervention by the central bank.
Further guidance on these operational changes will be communicated to authorized dealers and the general public in the coming days. The move towards a free-floating exchange rate reflects a shift towards a more market-driven approach in Nigeria’s foreign exchange market.