Official Exchange Rate (FMDQ): The exchange rate between the Nigerian Naira (₦) and the US Dollar ($) on the FMDQ Security Exchange opened at ₦779.89 per dollar on Thursday, October 19, 2023, and closed at ₦782.68 per dollar on the same day.
Black Market Rate: In contrast, the Naira is trading as high as ₦1170 per US Dollar on the black market, despite the Central Bank of Nigeria’s announcement to unify all segments of the foreign exchange market. The CBN had previously collapsed all FX windows into the Investors and Exporters (I&E) window.
In the I&E window, the “Willing Buyer, Willing Seller” model was reintroduced, allowing all eligible transactions to access foreign exchange. The operational rate for government-related transactions is based on the weighted average rate of the preceding day’s executed transactions at the I&E window.
The changes indicate a more relaxed approach to controlling the Naira’s exchange rate, allowing it to float more freely in the foreign exchange market. This approach aligns with a free-floating exchange rate system, where market forces predominantly determine the exchange rate without significant central bank intervention.
Please note that exchange rates may vary, and it is essential to verify the most up-to-date rates through reliable sources.