As of today, December 23, 2023, Findwhosabi News has obtained the official exchange rates for the US Dollar to Naira in Nigeria. The information encompasses rates from both Bureau De Change (BDC) and the Central Bank of Nigeria (CBN).
Official Exchange Rate According to FMDQ Security Exchange:
- Opening Rate: ₦915.00 per dollar
- Closing Rate: ₦885.88 per dollar
The official data released on the FMDQ Security Exchange, the designated forex trading portal, indicates the Naira’s exchange rate against the US Dollar.
However, it is noteworthy that the black market is trading the Naira at a higher rate, reaching ₦1,175 per Dollar. This is despite the Central Bank of Nigeria’s announcement of the unification of all segments of the foreign exchange market. The CBN, through a circular on June 14, 2023, collapsed all FX windows into the Investors and Exporters (I&E) window.
Key points from the CBN circular include:
- Abolishment of segmentation, collapsing all segments into the I&E window.
- Re-introduction of the “Willing Buyer, Willing Seller” model at the I&E Window.
- Calculation of operational rates for government-related transactions based on the weighted average rate of the preceding day’s executed transactions at the I&E window.
- Proscription of trading limits on oversold FX positions, with permission to hedge short positions with OTC futures.
- Re-introduction of order-based two-way quotes, with a bid-ask spread of N1.
- Reintroduction of the Order Book to ensure transparency of orders and seamless execution of trades.
- Operational hours of trades from 9 a.m to 4 p.m, Nigeria time.
These operational changes signify Nigeria’s move towards a more flexible exchange rate system, allowing market forces to determine the value of the Naira. A free-floating exchange rate implies that the government is relinquishing control, enabling market dynamics to influence the external value of the currency. Further guidance on operational changes is expected to be communicated to authorized dealers and the public in due course.