Official and Black Market Dollar to Naira Exchange Rates for October 16, 2023
LAGOS, NIGERIA – Findwhosabi News has obtained the official exchange rates for the US Dollar to Naira as of today, October 16, 2023. This report also includes rates from the Bureau De Change (BDC) and the Central Bank of Nigeria (CBN).
According to data released by the FMDQ Security Exchange, the official forex trading portal, the Naira opened at ₦770.16 per US Dollar on Friday, October 13, 2023. It subsequently closed at ₦764.86 per US Dollar on the same day.
It is important to note, however, that the Naira is trading significantly higher at the black market, where the exchange rate has reached as high as N1045 per US Dollar. This variance between the official and black market rates has persisted, even after the Central Bank of Nigeria (CBN) announced the unification of all segments of the foreign exchange market.
In a circular issued on June 14, 2023, the CBN abolished segmentation in the foreign exchange market, consolidating all FX windows into the Investors and Exporters (I&E) window. This restructuring was a significant move toward enhancing the transparency and efficiency of the foreign exchange market.
Key highlights from the CBN’s circular included:
- Abolishment of Segmentation: All segments of the foreign exchange market were merged into the Investors and Exporters (I&E) window.
- Willing Buyer, Willing Seller Model: The CBN reintroduced the “Willing Buyer, Willing Seller” model at the I&E window to encourage fair market dynamics.
- Operational Rate for Government Transactions: The operational rate for all government-related transactions was determined as 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: Trading limits on oversold FX positions were removed, and entities were granted permission to hedge short positions with OTC futures. Limits on overbought positions were set at zero.
- Order-Based Two-Way Quotes: The CBN reintroduced order-based two-way quotes with a bid-ask spread of N1. All transactions would be cleared by a Central Counter Party (CCP).
- Reintroduction of Order Book: An Order Book was reintroduced to enhance the transparency of orders and facilitate the seamless execution of trades.
- Operational Hours: The operational hours for trades were set from 9 a.m to 4 p.m, Nigeria time.
The CBN emphasized that additional guidance on these operational changes would be communicated to authorized dealers and the general public in due course.
These significant changes to the foreign exchange market operation in Nigeria indicate a shift toward a more flexible exchange rate regime, allowing market forces to play a more prominent role in determining the Naira’s external value. A free-floating exchange rate regime, as adopted by Nigeria, lets market forces dictate the exchange rate, reducing direct central bank interventions.
Please be aware that exchange rates can fluctuate, so it is advisable to check for the most current rates when conducting foreign exchange transactions.