Dollar to Naira Exchange Rate Today: An Overview on July 19, 2023
- The exchange rate of the Naira against the US dollar on July 18, 2023.
- The Central Bank of Nigeria (CBN) unified all segments of the forex market into the Investors & Exporters (I&E) window on June 14, 2023.
- Nigeria is moving towards a free-floating exchange rate, allowing the value of the Naira to be determined by market forces.
Today’s Dollar to Naira Exchange Rate
This article provides today’s exchange rate of the US dollar to the Naira, the official currency of Nigeria.
These rates are official and have been obtained from the Bureau De Change (BDC) and the Central Bank of Nigeria (CBN).
On Tuesday, July 18, 2023, the Naira started the day with a value of ₦788.17 for each US dollar, according to the numbers released by the FMDQ Security Exchange.
By the end of the day, the value of the Naira improved, closing at ₦742.93 per dollar.
Unified Forex Market by CBN
On June 14, 2023, the CBN made an important announcement.
They decided to bring together all parts of the forex market. This means that everything will now happen in the Investors & Exporters (I&E) window.
This move by the CBN is a part of a series of changes aimed at improving how the Nigerian forex market works.
According to their announcement, requests related to medical needs, school fees, BTA/PTA, and SMEs will continue to be processed through banks.
New Rules in the Forex Market
There are several new rules in the I&E window. They have brought back the “Willing Buyer, Willing Seller” model, meaning that all transactions will be done based on demand and supply.
For government-related transactions, the operational rate will be based on the average rate of the previous day’s completed transactions at the I&E window.
They have also stopped trading limits on oversold forex positions, allowing businesses to hedge short positions with Over-The-Counter (OTC) futures. Limits on overbought positions, however, will be zero.
The I&E window has also introduced a bid-ask spread of N1 and will clear all transactions through a Central Counter Party (CCP).
They will also ensure transparency of orders and smooth execution of trades by reintroducing the Order Book.
Trading hours at the I&E window will be from 9 am to 4 pm, Nigerian time.
The CBN has stated that it will provide more information about these operational changes to the public and authorized dealers.
A Shift Towards a Free-floating Exchange Rate
These changes suggest that Nigeria is relaxing its control over the Naira. This implies a move towards a free-floating exchange rate.
A free-floating exchange rate is determined entirely by market forces, without any influence from the central bank on the external value of the exchange rate.
Disclaimer: The exchange rates in this article are not determined by us but are obtained from the FMDQOTC’s website and various online media sources. The rates at which you buy or sell forex may be different from what is mentioned in this article.