FindWhosabi News has obtained the official exchange rates for the US dollar to the Nigerian naira today, which include rates from both Bureau De Change (BDC) and the Central Bank of Nigeria (CBN).
What Is The Official Exchange Rate For Dollar To Naira Today?
According to data released on the FMDQ Security Exchange, the official forex trading portal, the Naira’s exchange rate against the US dollar exhibited the following trends on Friday, September 8, 2023. It opened at ₦767.83 per dollar and closed at ₦736.62 per dollar on the same day.
On June 14, 2023, the Central Bank of Nigeria (CBN) made a significant announcement regarding the unification of all segments within the forex exchange (FX) market. In a circular issued by the CBN, it was stated 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 aimed at streamlining operations within the Nigerian FX market. As per the CBN’s statement:
- Abolishment of Segmentation: All previously existing market segments have been consolidated into the Investors and Exporters (I&E) window. However, specific applications such as those for medicals, school fees, BTA/PTA, and SMEs will continue to be processed through deposit money banks.
- Re-introduction of the “Willing Buyer, Willing Seller” Model: The I&E Window will now operate based on the “Willing Buyer, Willing Seller” model, as originally outlined in the circular dated April 21, 2017, and referenced as FM/DIR/CIR/GEN/08/007. This window allows all eligible transactions to access foreign exchange.
- Operational Rate for Government-Related Transactions: The operational rate for all government-related transactions will be based on the weighted average rate of the previous day’s executed transactions at the I&E window, calculated to two decimal places.
- Proscription of Trading Limits on Oversold FX Positions: Traders are now permitted to hedge short positions with OTC futures, while limits on overbought positions have been set to zero.
- Re-introduction of Order-Based Two-Way Quotes: A bid-ask spread of N1 has been established for all transactions, which will be cleared by a Central Counter Party (CCP).
- Reintroduction of Order Book: To enhance transparency and the seamless execution of trades, the Order Book system has been reintroduced.
- Operational Hours: Trading within the I&E window will occur from 9 a.m. to 4 p.m., Nigeria time.
The CBN noted that additional guidance regarding these operational changes will be communicated to authorized dealers and the general public in due course.
These changes signify a significant shift in Nigeria’s FX market operations, indicating a more liberal approach to the control of the naira’s exchange rate. The adoption of a free-floating exchange rate system means that the government allows market forces to determine the exchange rate without intervention from the central bank, enhancing transparency and efficiency in the foreign exchange market.