The official Dollar to Naira rate stands at 463.50 Naira to Dollar today. However, the black market average rate stands at 738 Naira to a Dollar. The disparity between the official rate and the black market rate calls for concern.
Many Nigerians would rather change at the black market than the official channel made available by Government.
Black Market’s Dollar to Naira Exchange Rate Today
The parallel (black market) exchange rate is always different from the CBN rate. Currently, Naira is trading at 738 per Dollar. The parallel market is buying at 731 Naira per Dollar and selling at 738 Naira per Dollar.
The economy is always affected by the price movements of the exchange rate. As the Naira falls, inflation rises, which increases the prices of goods which affects the citizens. The Central Bank Governor has called for an all-hands-on-deck approach to turn around the economy.
Please note that the Central Bank Of Nigeria does not recognize the black market rates.
The Central Bank of Nigeria has consistently maintained that the parallel market represents less than one percent of foreign exchange transactions and should never be used to determine Nigeria’s Naira/Dollar exchange rate.
Key Factors That Affect Dollar to Naira Exchange Rate
These are some of the factors that influence the exchange rate.
Inflation is known to influence the exchange rate. If the Nigerian economy can be stabilized and inflation put under control (by increasing exports), it will impact positively the Naira.
Still, if inflation continues to rise, the Naira will continue to fall, thereby leading to an increase in the prices of food and basic amenities.
Interest rates are also another indicator to watch. If the CBN raises the interest rates, the impact is almost immediately felt, and vice versa if it reduces.
A continuous rise in government debt can limit the inflow of dollars into the economy. If the inflow of the Dollar increases, it strengthens the position of the Naira, but if it reduces, it weakens the position of the Naira against the Dollar.
Exchange rates are sometimes influenced by speculators. They sometimes hoard money in anticipation of a profit which affects the Naira adversely.
The Dollar to Naira exchange rates changes daily due to several factors. Therefore, it is important always to know these daily rates to be able to maximize opportunities for profit, especially if you deal with dollars a lot.
Hence, the knowledge in this article is advantageous to you and your friends. So ensure you share it with them. Cheers