- The exchange rate for Dollar to Naira on 25th June 2023.
- The Central Bank of Nigeria’s (CBN) latest policy on the forex market.
- The impact of these changes on the Nigerian economy.
Dollar to Naira Exchange Rate on 25th June 2023
The Dollar to Naira rate is the amount of Naira (₦) you would need to exchange for one US dollar ($). The data for 23rd June 2023, collected from the FMDQ Security Exchange, revealed that the Naira opened at ₦759.13 per dollar and closed at ₦770.17 per dollar. It even reached a high of ₦815 per dollar at the investors and exporters (I&E) window on 21st June 2023, but it finally closed at ₦770.17 per dollar on 23rd June 2023.
The Central Bank of Nigeria’s (CBN) Forex Policy
The Central Bank of Nigeria (CBN) made an important announcement on 14th June 2023 about changes to the forex exchange (FX) market. The announcement includes the unification of all the different parts of the FX market. This means that there will no longer be different sections or windows in the market; instead, all activities will take place in the investors & exporters (I&E) window.
This change is part of several immediate changes to the operations of the Nigerian FX market.
What Does this Policy Mean?
Let’s break down what this new policy means for you:
- No More Segmentation: Now, all the different sections of the market are in one place – the I&E window. This includes applications for medical, school fees, BTA/PTA, and SMEs transactions.
- The ‘Willing Buyer, Willing Seller’ Model: This model allows those involved in a transaction to negotiate and agree on the price of foreign exchange. This will guide all operations at the I&E window.
- Operational Rate: The rate for all government-related transactions will be the average rate of the previous day’s executed transactions at the I&E window. This rate will be calculated up to two decimal places.
- Trading Limits on Oversold FX Positions: These are now prohibited. However, short positions can still be hedged with over-the-counter (OTC) futures.
- Two-Way Quotes: Bids and asks can have a spread of up to N1. All transactions need to be cleared by a Central Counter Party (CCP).
- Order Book: The reintroduction of the Order Book will increase transparency of orders and facilitate smooth execution of trades.
- Operational Hours: The trading hours are now from 9 am to 4 pm, Nigerian time.
CBN assured that more details about these operational changes will be communicated to authorized dealers and the general public soon.
Impact of the New Forex Policy
These changes in the country’s FX market mean that Nigeria has relaxed its control over the naira, allowing the currency to float freely. A free-floating exchange rate is one where the government lets the market forces alone determine the exchange rate without any attempt from the central bank to influence it.
Disclaimer: VoiceofNigeria.org.ng doesn’t decide or set forex rates. Official NAFEX rates are collected from the FMDQOTC website. Parallel market rates come from various sources, like online media outlets. The rates at which you buy or sell forex might differ from what is mentioned