As of November 21, 2023, the official exchange rate between the Naira and the US Dollar, according to data from the FMDQ Security Exchange, is as follows:
- Opening Rate: ₦806.25 per dollar
- Closing Rate: ₦750.14 per dollar
However, it’s important to note that despite the official exchange rate, the Naira is trading at a higher rate of ₦1,130 per Dollar in the black market. This is in contrast to the Central Bank of Nigeria’s (CBN) announcement of the unification of all segments of the foreign exchange market.
The CBN, in a circular on June 14, 2023, abolished segmentation, collapsing all segments into the Investors and Exporters (I&E) window. The operational rate for all government-related transactions is determined by the weighted average rate of the preceding day’s executed transactions at the I&E window.
Other changes include the reintroduction of the “Willing Buyer, Willing Seller” model at the I&E window, allowing eligible transactions to access foreign exchange at this window. The CBN also proscribed trading limits on oversold FX positions and reintroduced order-based two-way quotes with a bid-ask spread of N1. The operational hours of trades are from 9 a.m to 4 p.m, Nigeria time.
These operational changes suggest that Nigeria has eased its control of the Naira, allowing the local currency to float freely in the foreign exchange market. The move towards a free-floating exchange rate means that the Naira’s value is determined by market forces, without direct intervention from the central bank to influence its external value.