- The official exchange rate of the US Dollar to the Nigerian Naira on July 11, 2023.
- The Central Bank of Nigeria unified all forex exchange market segments on June 14, 2023.
- Significant operational changes indicate the shift towards a free-floating exchange rate system, allowing market forces to determine the Naira’s value.
Current Dollar to Naira Exchange Rate
Today, on July 11, 2023, VoiceofNigeria has gathered data reflecting the official exchange rates between the US Dollar and the Nigerian Naira. The Bureau De Change (BDC) rates along with the Central Bank of Nigeria (CBN) rates have been taken into account.
Official Exchange Rate Today
The exchange rates are subject to fluctuations, as evidenced by the rates on July 11, 2023. The Naira started the day at ₦769.00 per dollar and closed at ₦744.07 per $1, as per the data released on the FMDQ Security Exchange, the official forex trading platform.
Forex Market Unification by the Central Bank of Nigeria
On June 14, 2023, the Central Bank of Nigeria (CBN) made a crucial announcement. All segments of the foreign exchange (FX) market are now unified, as stated by the CBN. This integration implies the consolidation of all FX windows into the investors and exporters (I&E) window.
The bank’s initiative is a part of the immediate operational changes in the Nigerian FX market.
Operational Changes and Their Implications
The bank issued a circular detailing the changes:
- The abolishment of segmentation signifies that all market segments are now merged into the Investors and Exporters (I&E) window. However, applications related to medicals, school fees, BTA/PTA, and SMEs will still be processed through deposit money banks.
- The bank has reintroduced the “Willing Buyer, Willing Seller” model at the I&E Window. Transactions at this window shall adhere to existing circular guidelines.
- The operational rate for government-related transactions will be determined by the weighted average rate of the preceding day’s transactions at the I&E window, calculated to two decimal places.
- The trading limits on oversold FX positions have been proscribed. However, it’s permitted to hedge short positions with OTC futures. Limits on overbought positions shall be zero.
- The bank has reintroduced order-based two-way quotes, with a bid-ask spread of N1. All transactions shall be cleared by a Central Counter Party (CCP).
- The Order Book’s reintroduction promotes transparency in orders and ensures seamless execution of trades.
- The operational hours for trades have been established from 9am to 4pm, Nigeria time.
The CBN will provide further guidance on these operational changes to authorized dealers and the general public shortly.
These changes hint at Nigeria easing its control over the Naira, allowing it to float freely.
Understanding Free-floating Exchange Rate
In a free-floating exchange rate system, the government refrains from influencing the exchange rate. The local currency’s external value is determined purely by market forces.
Note: VoiceofNigeria does not set or determine forex rates. The official NAFEX rates are sourced from the FMDQOTC website. Parallel market rates come from various sources, including online media outlets. The rates at which you buy or sell forex might differ from those stated in this article.