As of today, September 10, 2023, the official exchange rate for the US Dollar to the Nigerian Naira is as follows:
The exchange rate data provided by the FMDQ Security Exchange, which is the official forex trading portal, indicates that the Naira opened at ₦767.83 per US Dollar on Friday, September 8, 2023, and closed at ₦736.62 per US Dollar on the same day.
Additionally, the Central Bank of Nigeria (CBN) made significant changes to the forex exchange (FX) market on June 14, 2023, which continue to impact the exchange rate. These changes include:
Abolishment of Segmentation: All FX market segments have been consolidated into the Investors and Exporters (I&E) window. Transactions such as medical payments, school fees, BTA/PTA, and SMEs are to be processed through deposit money banks.
Re-introduction of “Willing Buyer, Willing Seller” Model: This model applies to the I&E window, and all eligible transactions can access foreign exchange at this window.
Operational Rate for Government Transactions: The operational rate for all government-related transactions is based on the weighted average rate of the preceding day’s executed transactions at the I&E window, calculated to two decimal places.
Proscription of Trading Limits: Oversold FX positions can hedge short positions with OTC futures, while overbought positions shall have zero limits.
Re-introduction of Order-Based Two-Way Quotes: Bid-ask spreads are set at N1, and all transactions are cleared by a Central Counter Party (CCP).
Reintroduction of Order Book: An Order Book has been reintroduced to ensure transparency of orders and seamless execution of trades.
Operational Hours: Trading hours are from 9 a.m to 4 p.m, Nigeria time.
These operational changes indicate a shift towards a more market-driven approach in determining the Naira’s exchange rate, allowing it to float freely based on supply and demand in the forex market. This approach is aimed at enhancing transparency and efficiency in the foreign exchange market. Further guidance on these changes will be communicated to authorized dealers and the public as necessary.