By Ajibola Olaide, JKNewsMedia Reporter
OFFICIAL FIGURES from the Central Bank of Nigeria (CBN) put the dollar at N1,346.25 on Friday, 30 October 2026, compared with N1,346.91 recorded in the previous day’s trading, indicating a slight appreciation of the naira against the United States (US) dollar.
JKNewsMedia.com reports that despite the marginal improvement in the official market, the dollar traded at ₦1,389 on the parallel market, highlighting the difference between the reported official rate and the black market rate.
The CBN introduced changes to Nigeria’s foreign exchange market in June 2023, collapsing all segments into the Investors and Exporters (I&E) window in a move aimed at unifying the market.
In a circular dated Wednesday, 14 June 2023, the apex bank announced that all foreign exchange windows would operate through the I&E window, while applications for medical expenses, school fees, business and personal travel allowances, and small and medium-sized enterprises would continue to be processed through deposit money banks.
The bank also reintroduced the willing buyer, willing seller model, allowing eligible transactions to access foreign exchange through the I&E window under the existing operational guidelines.
For government-related transactions, the CBN stipulated that the applicable rate would be based on the weighted average of transactions executed in the I&E window on the preceding day, calculated to two decimal places.
Also, the circular removed trading limits on oversold foreign exchange positions, permitted market participants to hedge short positions through over-the-counter futures, and set the limit on overbought positions at zero.
To improve transparency and facilitate trade execution, the bank reintroduced order-based two-way quotes with a bid-ask spread of ₦1. It also required all transactions to be cleared through a central counterparty and brought back an order book to provide visibility into market orders.
The CBN indicated it set trading hours at 9.00am to 4.00pm Nigerian time and said it would communicate further operational guidance to authorised dealers and the public; noting that the changes enable the naira’s value to respond more directly to market forces.
Whereas, under a free-floating exchange rate system, market demand and supply determine the value of a currency, without direct central bank intervention to influence its external value, the Apex bank noted.
Disclaimer: JKNewsMedia.com is not responsible for setting forex rates. Official market figures are sourced from Financial Markets Dealers Quotations Over-the-Counter (FMDQ OTC), while parallel market figures are gathered from other sources. Rates offered by dealers may differ.
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