In the latest financial update, Findwosabi News presents the official Dollar to Naira exchange rates for today, October 7, 2023, as obtained from reliable sources, including the Bureau De Change (BDC) rates and the Central Bank of Nigeria (CBN) rates.
Official Exchange Rate for Dollar to Naira Today
According to data released by the FMDQ Security Exchange, the official forex trading portal, the exchange rate between the Naira and the US Dollar exhibited the following trends on Friday, October 6, 2023:
- Opening Rate: The Naira opened at ₦766.82 per US Dollar.
- Closing Rate: The Naira closed at ₦741.85 per US Dollar.
This data provides a snapshot of the official exchange rates, reflecting the dynamics of the currency market in Nigeria.
Black Market Rate
However, it is crucial to note that in the parallel market, the Naira is trading at a significantly higher rate of N1000 per US Dollar. This discrepancy has arisen despite the Central Bank of Nigeria’s announcement regarding the unification of all segments of the foreign exchange market.
The Central Bank, in a circular issued on June 14, 2023, announced the abolition of segmentation in the foreign exchange market. All FX windows were collapsed into the Investors and Exporters (I&E) window. Some key highlights from the circular include:
- “Willing Buyer, Willing Seller” Model: The reintroduction of this model at the I&E Window, with operations guided by the extant circular dated April 21, 2017.
- Operational Rate for Government Transactions: The operational rate for all government-related transactions would be the weighted average rate of the preceding day’s executed transactions at the I&E window.
- Proscription of Trading Limits: There are no trading limits on oversold FX positions, with permission to hedge short positions with OTC futures. Limits on overbought positions are set at zero.
- Order-Based Two-Way Quotes: Reintroduction of order-based two-way quotes, with a bid-ask spread of N1.
- Central Counter Party (CCP): All transactions shall be cleared by a Central Counter Party.
- Order Book: The reintroduction of the Order Book to ensure transparency of orders and seamless execution of trades.
- Operational Hours: Trading hours are set from 9 a.m to 4 p.m, Nigeria time.
These changes in the country’s FX market imply that Nigeria has taken steps to relax its control over the Naira, allowing the local currency to float more freely. A free-floating exchange rate means that the exchange rate is determined primarily by market forces, with minimal intervention by the central bank.
This development signifies a shift in Nigeria’s foreign exchange policies and underscores the importance of market dynamics in determining currency exchange rates. Further guidance on these operational changes is expected to be communicated to authorized dealers and the general public in the near future.
The evolving situation in the foreign exchange market will be closely monitored as it has far-reaching implications for Nigeria’s economy and financial stability.