Dollar to Naira exchange rate for today, Tuesday 04 July 2023 has been obtained by this reporter.
Newsonline Nigeria has obtained the official dollar to the naira exchange rate in Nigeria today, including the Bureau De Change (BDC) rate and CBN rates.
Black market dollar to naira today
| Dollar to Naira (USD to NGN) | Black Market Exchange Rate Today |
| Buying Rate | ₦769 |
| Selling Rate | ₦772 |
How Much is Dollar to Naira official CBN rate
Below you can see the chart for the Nigerian Naira rate today compared to the Dollar.
| 1 USD = 759.6459 NGN |
| 1 Dollars = 759.6459 Nigerian Naira |
| The USDNGN rate as of 04 Jul 2023 |
Please keep in mind that the Central Bank of Nigeria (CBN) does not recognize the parallel market (black market) and has recommended individuals interested in Forex contact their respective banks before proceeding.
The parallel exchange rate (black market rate) is always different from the CBN rate. The exchange rate between the US dollar and the Nigerian Naira significantly impacts the Nigerian economy.
As the Naira falls in value, inflation takes over the economy, which usually impacts the inhabitants. The Central Bank has stated that the Nigerian economy needs a significant turnaround and has asked Nigerians to work toward this goal, such as increasing exports.
The black market rate for dollars is frequently higher than the Central Bank of Nigeria (CBN). The CBN Exchange rate is the rate at which you can purchase or sell dollars for Naira on the CBN dollar-to-naira website, cbn.gov.ng.
Newsonline Nigeria reports that the dollar to naira bank rate is the rate you use when you buy something from a foreign website with your Naira MasterCard or Debit card from a Nigerian bank. These rates are almost always cheaper than those available on the black/parallel market.
Dollar to Naira CBN rates today
| Date | Currency | Buying(NGN) | Central(NGN) | Selling(NGN) |
|---|---|---|---|---|
| 6/27/2023 | US DOLLAR | 758.78 | 759.28 | 759.78 |
| 6/27/2023 | POUNDS STERLING | 967.0651 | 967.7024 | 968.3396 |
| 6/27/2023 | EURO | 830.7882 | 831.3357 | 831.8831 |
| 6/27/2023 | SWISS FRANC | 846.7582 | 847.3161 | 847.8741 |
| 6/27/2023 | YEN | 5.2646 | 5.268 | 5.2715 |
| 6/27/2023 | CFA | 1.2163 | 1.2263 | 1.2363 |
| 6/27/2023 | WAUA | 989.833 | 990.4852 | 991.1375 |
| 6/27/2023 | YUAN/RENMINBI | 105.1122 | 105.1819 | 105.2516 |
| 6/27/2023 | RIYAL | 202.309 | 202.4423 | 202.5756 |
| 6/27/2023 | SOUTH AFRICAN RAND | 41.0205 | 41.0475 | 41.0745 |
Factors Influencing Foreign Exchange Rates
Here are some causes of the dwindling dollar to naira exchange rate.
Inflation Rates: It is well known that inflation directly impacts black market exchange rates. If the Nigerian economy can be stabilized and inflation is brought under control, the naira will benefit; however, if the naira continues to fall, it may indicate that food and other necessities are becoming more expensive daily.
Interest Rates: Another tool to keep an eye on is interest rates. If the interest rate at which banks lend money rises, it would harm the economy, causing it to contract and, as a result, the value of the naira to fall.
Government Debt: National debt can impact investor confidence and, as a result, the influx of funds into the economy. If inflows are high, the naira exchange rate will rise in favour of the naira.
Speculators: Speculators frequently impact the naira-to-dollar exchange rate. They stockpile money in anticipation of a gain, causing the naira to plummet even lower.
Conditions of Trade: Favorable trade terms will lead to an increase in the value of the naira to the dollar, although Nigeria is currently experiencing a trade deficit. Everything comes from China, India, and the majority of Asian countries.
Furthermore, Newsonline Nigeria recalls that the Central Bank of Nigeria (CBN) on Wednesday 14th June 2023 announced the unification of all segments of the forex exchange (FX) market.
In a circular, the CBN said all FX windows are now collapsed into the investors & exporters (I&E) window.
According to the apex bank, the move is part of a series of immediate changes to operations in the Nigerian FX market.
The statement read, “Abolishment of segmentation. All segments are now collapsed into the Investors and Exporters (I&E) window. Applications for medicals, school fees, BTA/PTA, and SMEs would continue to be processed through deposit money banks.
“Re-introduction of the “Willing Buyer, Willing Seller” model at the I&E Window. Operations in this window shall be guided by the extant circular on the establishment of the window, dated 21 April 2017, and referenced FM/DIR/CIR/GEN/08/007. All eligible transactions are permitted to access foreign exchange at this window.
“The operational rate for all government-related transactions shall be the weighted average rate of the preceding day’s executed transactions at the I&E window, calculated to two (2) decimal places.
“Proscription of trading limits on oversold FX positions with permission to hedge short positions with OTC futures. Limits on overbought positions shall be zero.
“Re-introduction of order-based two-way quotes, with bid-ask spread of N1. All transactions shall be cleared by a Central Counter Party (CCP).
“Reintroduction of Order Book to ensure transparency of orders and seamless execution of trades.
“The operational hours of trades shall be from 9am to 4pm, Nigeria time.”
The apex noted that further guidance on the operational changes would be communicated to authorised dealers and the general public in due course.
The changes to operations in the country’s FX market implies that Nigeria has eased its control of the naira, allowing the local currency to freely float.
Meanwhile, a free-floating exchange rate occurs when a government allows the exchange rate to be determined purely by market forces and there is no attempt to ask the central bank to influence the external value of the exchange rate.
