Learn about the Dollar to Naira exchange rate on June 23, 2023, and understand the recent changes made by the Central Bank of Nigeria. Discover what a free-floating exchange rate means.
Dollar-Naira Exchange Rate (June 23, 2023)
- Current exchange rate for Dollar to Naira in Nigeria (June 23)
- The Central Bank of Nigeria’s (CBN) changes to forex exchange.
- What a free-floating exchange rate is.
Exchange Rate for Dollar to Naira on June 23, 2023
On June 23, 2023, Gatekeepers News tells us the official rate for the dollar to the naira. This includes the rates from the Bureau De Change (BDC) and the Central Bank of Nigeria (CBN).
What’s the Official Rate?
Data from FMDQ Security Exchange, a trusted trading site, helps us understand. On Thursday, June 22, 2023, for each dollar, you needed 753.50 Naira at the start of the day. By the day’s end, you needed 765.13 Naira for each dollar.
At the investors and exporters (I&E) window, the Naira reached as high as 753.50 to the dollar. But, it closed at 765.13 on Wednesday, June 21, 2023.
Dollar to Naira Rates Today 23 June 2023
Looking for how much Naira you can get for a dollar? Let’s make it simple with numbers from FMDQ Security Exchange, the official place for trading money, on June 22, 2023.
Here’s the info in a simple table:
|Time||Rate (Naira per $1)|
|Start of Day||₦753.50|
|End of Day||₦765.13|
Black Market Exchange Rates: USD to NGN Today
Today, the exchange rate in the black market, or the Lagos Parallel Market, is as follows:
|USD to NGN Rate||Black Market (June 22, 2023)|
It’s really important to remember that these rates come from the Bureau De Change (BDC), and they might be different from the official rates from the Central Bank of Nigeria (CBN). The CBN doesn’t support the black market and advises people to go to their banks for exchanging foreign money.
Changes by Central Bank of Nigeria (CBN)
On June 14, 2023, te CBN announced changes. They merged all segments of the forex exchange (FX) market.
What Does the Merger Mean?
The CBN released a notice explaining the changes. They have joined all FX windows into the investors & exporters (I&E) window.
The bank says this is part of a series of changes in the Nigerian FX market. They made clear that all segments are now part of the I&E window. Medical applications, school fees, BTA/PTA, and SMEs will still be processed through deposit money banks.
The CBN also reintroduced the “Willing Buyer, Willing Seller” model at the I&E Window.
The rule for all government-related transactions is now the weighted average rate of the previous day’s transactions at the I&E window. The rate is calculated to two decimal places.
The bank banned trading limits on oversold FX positions. But, it allowed hedging short positions with OTC futures. The limit on overbought positions is now zero.
The CBN also reintroduced two-way quotes with a bid-ask spread of N1. A Central Counter Party (CCP) must clear all transactions.
The bank also reintroduced the Order Book to ensure orders are transparent and trades execute seamlessly. The trading hours are from 9 am to 4 pm, Nigeria time.
The CBN said they will provide more information about the changes to authorized dealers and the public soon.
Understanding a Free-Floating Exchange Rate
The changes to the FX market suggest that Nigeria has relaxed its control of the Naira. They’re allowing it to float freely.
What is a Free-Floating Exchange Rate?
A free-floating exchange rate is when a government lets the exchange rate be decided by the market forces. It does not ask the central bank to impact the exchange rate’s external value.
In simple terms, the price of the Naira is now decided by supply and demand in the market, not by the government.
With these changes, we see how the government is trying to make the financial system more open and clear. It will be interesting to see how these changes impact the Naira in the coming months.