In a significant development, Findwhosabi News has obtained the official exchange rate for the United States Dollar (USD) to the Nigerian Naira (NGN) for today, October 19, 2023, featuring the rates provided by Bureau De Change (BDC) and the Central Bank of Nigeria (CBN).
Official Exchange Rate Today:
The official exchange rate between the Naira and the US Dollar, as per data released on the FMDQ Security Exchange, Nigeria’s official forex trading portal, indicates that the Naira opened at ₦784.82 per dollar on Wednesday, October 18, 2023, and closed at ₦790.68 per $1 on the same day.
Black Market Rate:
Despite the Central Bank of Nigeria’s recent announcement regarding the unification of all foreign exchange market segments, the Naira is trading as high as N1045 per Dollar in the black market.
CBN’s FX Market Reforms:
On June 14, 2023, the Central Bank of Nigeria introduced reforms to the foreign exchange market, which included the abolishment of segmentation. All FX market segments were consolidated into the Investors and Exporters (I&E) window. Transactions for medicals, school fees, BTA/PTA, and SMEs continue to be processed through deposit money banks.
The CBN also reintroduced the “Willing Buyer, Willing Seller” model at the I&E Window, with operations guided by a previous circular. All eligible transactions are allowed to access foreign exchange at this window.
Furthermore, the CBN proscribed trading limits on oversold FX positions, granting permission to hedge short positions with OTC futures. Limits on overbought positions were set at zero.
To enhance transparency, the CBN reintroduced order-based two-way quotes, with a bid-ask spread of N1. All transactions are now cleared by a Central Counter Party (CCP), and an Order Book has been reintroduced to ensure transparency of orders and seamless execution of trades.
The operational hours for trades are from 9 a.m to 4 p.m, Nigeria time. The CBN has assured that additional guidance on operational changes will be communicated to authorized dealers and the general public in due course.
These changes represent a notable shift in Nigeria’s FX market operations, indicating a move towards a more flexible exchange rate system, allowing the Naira to float freely. A free-floating exchange rate signifies that the Naira’s value is determined by market forces without central bank intervention.
Stay tuned for further updates on this evolving financial landscape.
Note: Exchange rates are subject to change based on market conditions and official announcements.