Findwhosabi News has obtained the latest official exchange rates for the Dollar to Naira in Nigeria, including rates from Bureau De Change (BDC) and the Central Bank of Nigeria (CBN).
Official Dollar to Naira Exchange Rate for Today
According to data released on the FMDQ Security Exchange, the official forex trading portal, the exchange rate between the Naira and the US dollar for Thursday, September 21, 2023, opened at ₦764.82 per dollar and closed at ₦738.00 per $1.
On June 14, 2023, the Central Bank of Nigeria (CBN) announced a significant change in the foreign exchange (FX) market by unifying all its segments. The CBN issued a circular stating that all FX windows have now been merged into the Investors & Exporters (I&E) window.
This move is part of a series of immediate changes to streamline operations in the Nigerian FX market. The CBN’s statement explained, “Abolishment of segmentation: All segments are now consolidated into the Investors and Exporters (I&E) window. Applications for medicals, school fees, BTA/PTA, and SMEs will continue to be processed through deposit money banks.”
The statement further outlined the following changes:
- Re-introduction of the “Willing Buyer, Willing Seller” Model: Operations in the I&E window will follow the extant circular on the establishment of the window, dated April 21, 2017, with all eligible transactions having access to foreign exchange at this window.
- Operational Rate for Government Transactions: The operational rate for all government-related transactions shall be 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: Oversold FX positions can now be hedged with OTC futures, while limits on overbought positions are set to zero.
- Re-introduction of Order-Based Two-Way Quotes: Bid-ask spreads are now set at N1, and all transactions will be cleared by a Central Counter Party (CCP).
- Reintroduction of Order Book: An order book is reintroduced to ensure transparency of orders and seamless execution of trades.
- Operational Hours: The operational hours for trades will be from 9 a.m to 4 p.m, Nigeria time.
The CBN noted that further guidance on these operational changes would be communicated to authorized dealers and the general public in due course.
These changes signify that Nigeria has loosened its control over the Naira, allowing the local currency to float freely. A free-floating exchange rate occurs when a government permits market forces to determine the exchange rate without central bank intervention.