The exchange rate of the US dollar to the Nigerian naira is one of the most important economic indicators in Nigeria, as it affects the prices of goods and services, the value of savings and investments, and the inflows and outflows of foreign currency.
Various factors, such as the demand and supply of foreign currency, the monetary and fiscal policies of the government, the inflation and interest rates, and the global market conditions determine the exchange rate.
In this article, Okay.ng will explain how the Central Bank of Nigeria (CBN) manages the exchange rate, what is the current exchange rate.
How does the CBN manage the exchange rate?
The CBN is the apex monetary authority in Nigeria, and one of its main functions is to maintain the stability of the naira and the external reserves.
The CBN adopts a managed float exchange rate regime, which means that it allows the exchange rate to be determined by the market forces, but intervenes occasionally to smooth out excessive fluctuations and maintain an optimal level of reserves.
The CBN operates different segments of the foreign exchange market, such as the official window, the interbank window, the bureau de change window, and the investors and exporters window.
Each segment has its exchange rate, depending on the availability and sources of foreign currency.
What is the current exchange rate?
The current exchange rate of the US dollar to the Nigerian naira varies depending on the segment of the market and the date of the transaction.
As of today, June 16, 2024, the CBN official rates are:
- Buying: ₦1,412.073
- Selling: ₦1,412.573
See the black market rates here.
