Dollar to Naira Exchange Rates: CBN and Bank Rates on October 10, 2023
The Nigerian naira has faced significant challenges in recent months due to fluctuating oil prices and a shortage of foreign exchange. This has led to a noticeable depreciation of the naira against the US dollar in both official and parallel markets, resulting in a substantial gap between the two exchange rates.
Current Dollar to Naira Exchange Rate According to CBN
The Central Bank of Nigeria (CBN) sets the official exchange rate at which it conducts foreign currency transactions with authorized dealers, including banks and bureau de change (BDCs). The CBN manages the supply and demand of foreign exchange in Nigeria through various policies and interventions.
As of October 9, 2023, the CBN’s official exchange rate for the dollar to naira is as follows:
- Buying: 764.02 NGN for $1
- Selling: 768.02 NGN for $1
This means that the CBN sells one US dollar for ₦768.02 and purchases one US dollar for 764.02 naira from authorized dealers.
Dollar to Naira Exchange Rate in Banks
On the other hand, commercial banks determine their exchange rates for buying and selling foreign currencies to their customers. Banks, as authorized foreign exchange dealers, acquire foreign currency from various sources, including the CBN, remittances, exports, and investments.
It’s important to note that bank exchange rates may vary among different banks due to factors like the availability of foreign exchange, demand, and profit margins. However, banks must comply with the CBN’s guidelines and regulations governing forex transactions.
According to Investors King, a reputable digital business news platform, the average bank exchange rate for the dollar to naira on October 9, 2023, is as follows:
- Buying: 775.04 NGN for $1
- Selling: 780 NGN for $1
This means that banks sell one US dollar for 780 naira and buy one US dollar for 775.04 naira from their customers.
Factors Influencing the Dollar to Naira Exchange Rate
Several internal and external factors play crucial roles in driving fluctuations in the dollar to naira exchange rate. Some of these influential factors include:
1. Oil Prices: Nigeria’s economy heavily relies on revenue generated from oil exports. Therefore, changes in global oil prices significantly impact Nigeria’s foreign exchange earnings.
2. Forex Demand: Nigeria faces constant high demand for foreign exchange to facilitate imports, service debts, repatriate profits, and meet other financial obligations. This persistent high demand often exceeds the available supply, putting pressure on the naira’s value.
As currency markets are dynamic, staying informed about these factors is essential for making informed financial decisions in these challenging times
