Findwhosabi News brings you the latest Dollar to Naira exchange rates for November 18, 2023.
As per data from the FMDQ Security Exchange, the official forex trading portal, the Naira commenced trading at ₦803.10 per dollar on Friday, November 17, 2023, and closed at ₦791.75 per $1 on the same day.
Despite the Central Bank of Nigeria’s (CBN) announcement to unify all segments of the foreign exchange market, the Naira is currently trading as high as ₦1,130 per Dollar in the black market. This discrepancy raises concerns about the effectiveness of the CBN’s measures in achieving exchange rate stability.
The CBN’s circular on June 14, 2023, abolished segmentation, collapsing all FX windows into the Investors and Exporters (I&E) window. Notably, the reintroduction of the “Willing Buyer, Willing Seller” model at the I&E Window was implemented, allowing eligible transactions to access foreign exchange at this window.
Key operational changes outlined in the circular include the determination of the operational rate for government-related transactions based on the weighted average rate of the preceding day’s executed transactions at the I&E window. The CBN also proscribed trading limits on oversold FX positions, permitting the hedging of short positions with OTC futures.
Moreover, the reintroduction of order-based two-way quotes with a bid-ask spread of N1 and the Order Book aimed at ensuring transparency of orders and seamless execution of trades have been implemented. The operational hours for trades are set from 9 a.m to 4 p.m, Nigeria time.
These changes signify a move towards a free-floating exchange rate, allowing market forces to determine the exchange rate without significant central bank intervention. As the situation unfolds, further guidance on operational changes is expected to be communicated to authorized dealers and the public. The lingering gap between official and black market rates raises questions about the effectiveness of the measures in achieving the desired exchange rate stability.