Findwhosabi News has acquired the official exchange rates for the Dollar to Naira in Nigeria for today, September 29, 2023. This includes rates from Bureau De Change (BDC) as well as Central Bank of Nigeria (CBN) rates.
Official Exchange Rate for Dollar to Naira Today
As per data released on the FMDQ Security Exchange, the official forex trading portal, the Naira’s exchange rate against the US Dollar began at ₦764.82 per dollar on Wednesday, September 28, 2023, and closed at ₦775.31 per $1 on the same day.
However, it’s worth noting that the Naira is currently trading as high as N1000 per Dollar on the black market. This is despite the Central Bank of Nigeria (CBN) announcing the unification of all segments of the foreign exchange market.
The CBN, in a circular issued on June 14th, 2023, declared the abolishment of segmentation in the FX market, consolidating all segments into the Investors and Exporters (I&E) window. Under this framework:
- Applications for purposes such as medicals, school fees, BTA/PTA, and SMEs would continue to be processed through deposit money banks.
- The “Willing Buyer, Willing Seller” model was reintroduced at the I&E Window.
- The operational rate for all government-related transactions would be based on the weighted average rate of the preceding day’s executed transactions at the I&E window, rounded to two decimal places.
- Trading limits on oversold FX positions were proscribed, with permission to hedge short positions using OTC futures, and overbought positions were limited to zero.
- Order-based two-way quotes were reintroduced with a bid-ask spread of N1.
- All transactions would be cleared by a Central Counter Party (CCP).
- The reintroduction of an Order Book was implemented to ensure transparency of orders and facilitate seamless execution of trades.
- Trading hours were set from 9 a.m to 4 p.m, Nigeria time.
The Central Bank 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 shifted towards a free-floating exchange rate system, allowing market forces to determine the Naira’s external value, with limited intervention by the central bank.
A free-floating exchange rate occurs when a government permits market forces to solely dictate exchange rates, refraining from active intervention to influence the currency’s external value.