Findwhosabi Reports Official Dollar to Naira Exchange Rate and Black Market Discrepancy
In the latest update on the Nigerian foreign exchange market, Findwhosabi reports the official dollar to Naira exchange rate for October 4, 2023. According to data from the FMDQ Security Exchange, the Naira started the day at ₦767.24 per US dollar on Tuesday, October 3, 2023, and closed at ₦745.19 per $1 the same day.
However, it is noteworthy that in the black market, the Naira is currently trading at a considerably higher rate of N1000 per US Dollar. This significant difference in exchange rates contrasts with the Central Bank of Nigeria’s (CBN) announcement regarding the unification of all segments of the foreign exchange market.
The CBN, in a circular issued on June 14, 2023, unveiled a series of changes to the country’s foreign exchange operations. These changes included the abolishment of segmentation within the foreign exchange market, reintroduction of the “Willing Buyer, Willing Seller” model at the Investors and Exporters (I&E) Window, and the use of a weighted average rate for government-related transactions based on the preceding day’s I&E window transactions.
Additionally, the CBN proscribed trading limits on oversold FX positions while permitting the hedging of short positions with OTC futures. The central bank also reintroduced order-based two-way quotes with a bid-ask spread of N1 and the Order Book to enhance transparency and trade execution. Trading hours were set from 9 a.m to 4 p.m, Nigeria time.
These operational changes indicate that Nigeria has adopted a more market-driven approach to its foreign exchange policies, allowing the Naira’s exchange rate to fluctuate based on market dynamics. Further details and guidance on these changes will be communicated to authorized dealers and the general public in due course.