The official exchange rate for the US dollar to the Nigerian Naira, as provided by FMDQ Security Exchange, reveals that on Friday, July 14, 2023, the Naira opened at ₦763.36 per dollar and closed at ₦803.90 per dollar.
In a recent announcement, the Central Bank of Nigeria (CBN) revealed its decision to unify all segments of the forex exchange market, consolidating them into the investors and exporters (I&E) window. This move, part of immediate changes to operations in the Nigerian FX market, aims to streamline the forex market.
As per the circular issued by the CBN, the segmentation in the forex market has been abolished, and all eligible transactions can access foreign exchange through the I&E window. Additionally, the “Willing Buyer, Willing Seller” model has been reintroduced at the I&E window, following the guidelines established in the April 21, 2017 circular.
Furthermore, the operational rate for government-related transactions will be determined based on the weighted average rate of the previous day’s executed transactions at the I&E window, calculated to two decimal places. Trading limits on oversold FX positions have been proscribed, while overbought positions will have zero limits.
Other measures introduced include the reintroduction of order-based two-way quotes, with a bid-ask spread of N1, the reinstatement of the Order Book for transparent order visibility and smooth trade execution, and the establishment of operational hours from 9 am to 4 pm, Nigeria time.
These changes in the forex market aim to enhance transparency, promote efficient trade execution, and ensure a unified and simplified system for forex transactions in Nigeria.