Findwhosabi News has acquired the latest information on the official exchange rate between the US dollar and the Nigerian naira today, encompassing both the Bureau De Change (BDC) rate and the rates set by the Central Bank of Nigeria (CBN).
What Is Today’s Official Dollar to Naira Exchange Rate?
According to data unveiled by the FMDQ Security Exchange, the designated forex trading platform, the exchange rate between the Nigerian naira and the US dollar exhibited an opening value of ₦773.29 per dollar on Friday, August 25, 2023. The day concluded with the exchange rate at ₦778.42 per $1 on the same date.
On June 14, 2023, the Central Bank of Nigeria (CBN) declared the amalgamation of all segments within the forex exchange (FX) market. An official circular conveyed the CBN’s announcement that all FX windows have been consolidated into the investors & exporters (I&E) window.
The apex bank clarified that this move is part of a series of immediate adjustments to operations in the Nigerian FX market. The statement outlined various aspects of these alterations:
- Abolition of Segmentation: All segments have been amalgamated into the Investors and Exporters (I&E) window. Transactions like medical expenses, school fees, BTA/PTA, and SMEs will continue to be handled through deposit money banks.
- Willing Buyer, Willing Seller Model: The “Willing Buyer, Willing Seller” model has been reintroduced at the I&E Window. Transactions within this window are guided by a circular from April 21, 2017. Eligible transactions can access foreign exchange through this window.
- Operational Rate for Government Transactions: The operational rate for government-related transactions will be the weighted average rate of the preceding day’s executed transactions at the I&E window, calculated to two decimal places.
- Prohibition of Trading Limits: Trading limits on oversold FX positions are prohibited. Short positions can be hedged with OTC futures, while limits on overbought positions will be set at zero.
- Reintroduction of Order-Based Quotes: Order-based two-way quotes are reintroduced with a bid-ask spread of N1. All transactions will be cleared by a Central Counter Party (CCP).
- Reintroduction of Order Book: An Order Book is reintroduced to ensure transparent orders and smooth trade execution.
- Operational Hours: Trading will occur from 9 a.m to 4 p.m, Nigeria time.
The CBN mentioned that it would communicate further guidance on these operational changes to authorized dealers and the public in due course.
These adjustments to the operations within Nigeria’s FX market indicate a relaxation of control over the naira, permitting the local currency to experience free market fluctuations.
In this context, a free-floating exchange rate signifies that the government allows market forces to determine the exchange rate without central bank intervention, facilitating the natural determination of the exchange rate’s external value.