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The Exchange Rate between the Dollar (USD) and Naira (NGN) in Nigeria’s Black Market Today

The USD to Naira exchange rate is always a topic of interest among Nigerians. As we delve into the rates for today, September 17, 2023, let’s explore the performance of the Naira against various currencies.

The USD to Naira Rate for Today: September 17, 2023

In Abuja’s Zone 4 market, currency dealers reported that the dollar is being bought at ₦950 and sold at ₦962 today. This slight variance from the ₦952 rate from the previous day indicates a minor shift. Similarly, the Euro to Naira exchange rate stands at 1005 for buying and 1032 for selling in the black market.

Meanwhile, the Pound to Naira exchange rate in the black market is 1224 for buying and 1195 for selling. It’s crucial to note that these rates may vary slightly across different parallel (unofficial) markets.

The Dollar to Naira Rate for the Past 7 Days

Let’s take a look at the dollar to Naira exchange rates for the past week:

  • September 16, 2023: 952 (buying) and 945 (selling)
  • September 15, 2023: 951 (buying) and 945 (selling)
  • September 14, 2023: 950 (buying) and 945 (selling)
  • September 13, 2023: 950 (buying) and 940 (selling)
  • September 12, 2023: 938 (buying) and 926 (selling)
  • September 11, 2023: 926 (buying) and 935 (selling)
  • September 10, 2023: 940 (buying) and 926 (selling)
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These rates give us an overview of the fluctuations in the exchange rate over the past week.

Understanding the Black Market Exchange Rates

The black market rates are the rates at which Aboki (local bureau de change operators) sell and buy currencies like the U.S. dollar, Euro, and British pound. Today’s dollar to Naira rate in the black market stands at a buying rate of 950 and a selling rate of 962.

Similarly, the rates for the Euro to Naira exchange in the black market are 1005 for buying and 1032 for selling. For the British Pound to Naira, the rates are 1224 for buying and 1195 for selling.

Analyzing the Dollar to Naira Exchange Rate

The fluctuation in the dollar to Naira exchange rate is a constant concern for Nigerians. Today, the rate in the black market is ₦950 per dollar, a slight increase from ₦931 at the beginning of this week. This 0.19% rise in the exchange rate indicates the Naira’s ongoing struggle against the U.S. dollar.

Zooming out to this month, the dollar was traded at ₦925 at the beginning of September 2023. As of today, with the dollar being traded at ₦950, we observe a 0.25% rise in the exchange rate for this month.

The Importance of the Black Market Dollar to Naira Exchange Rate

The USD to Naira exchange rate in the black market is of utmost importance to Nigerians, as it is the most traded currency pair in the foreign exchange (FX) market. Being aware of the current exchange rate allows individuals to plan their financial decisions better.

Frequently Asked Questions (FAQs) on the Dollar to Naira Exchange Rate

  • How much is $5 US in Nigeria?
    $5 is equivalent to 4750 Naira.

  • How much is $10 in the Nigeria black market?
    $10 is equivalent to 9500 Naira.

  • How much is 20 dollars in the Nigeria black market today?
    $20 is equivalent to 19000 Naira.

  • How much is 30 dollars in the Nigeria black market?
    $30 is equivalent to 28500 Naira.

  • How much is $40 in the Nigeria black market?
    $40 is equivalent to 38000 Naira.

  • How much is $100 in the black market?
    $100 is equivalent to 95000 Naira.

  • How much is 50 dollars in the black market today?
    $50 is equivalent to 47500 Naira.

  • How much is $60 in Nigeria’s black market?
    $60 is equivalent to 57000 Naira.

  • How much is 80 dollars in Nigeria’s black market?
    $80 is equivalent to 76000 Naira.

  • How much is $150 in Nigeria’s black market?
    $150 is equivalent to 142500 Naira.

  • How much is 250 dollars in Nigeria’s black market?
    $250 is equivalent to 237500 Naira.

  • How much is 300 dollars in Nigeria’s black market today?
    $300 is equivalent to 285000 Naira.

  • How much is $400 in Nigeria’s black market?
    $400 is equivalent to 380000 Naira.

  • How much is 1000 dollars in the black market?
    $1000 is equivalent to 950000 Naira.

  • How much is $2000 dollars in Nigeria?
    $2000 is equivalent to 1900000 Naira.

  • How much is 5000 in Nigeria’s black market?
    $5000 is equivalent to 4750000 Naira.

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The History of the Naira Exchange Rate to the Dollar

The relationship between the Naira and the Dollar has been a turbulent one, filled with unpredictable fluctuations. Let’s take a brief look at the history of the Naira exchange rate to the Dollar under various administrations:

President Ibrahim Babaginda’s Second-Tier Foreign Exchange Market (SFEM)

The SFEM was introduced during President Ibrahim Babaginda’s regime as a response to the pressure the Naira and the Nigerian economy faced. The Naira’s value weakened, reaching 11 Naira to 1 dollar by 1993.

President Sani Abacha’s Regime (1993-1998)

During President Sani Abacha’s tenure, the Naira was strictly controlled at an official exchange rate of 22 Naira to 1 dollar. The Autonomous Foreign Exchange Market (AFEM) was introduced during this period to facilitate the sale of Naira to those in need. However, economic problems and sanctions affected Nigeria’s foreign reserves, leading to the prominence of the black market exchange rate, which stood at around 88 Naira to 1 dollar.

Joseph Sanusi (CBN Governor 1999-2004)

Joseph Sanusi introduced the Interbank Foreign Exchange Market (IFEM) with the aim of reducing the gap between the official and black market exchange rates. The Naira was devalued to 85 Naira, while the black market exchange rate stood at 105 Naira to 1 dollar.

Chukwuma Soludo (2004-2009) and the Oil Boom

Under Chukwuma Soludo’s leadership, Nigeria experienced an oil boom, resulting in increased reserves and excess dollars. Soludo harmonized the exchange rates at the time and restricted access to the black market, as there was no need for it. However, when oil prices fell to $50 per barrel, Nigeria faced challenges, and the Naira depreciated to 148 Naira to 1 dollar.

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Sanusi Lamido Sanusi (2009-Feb 2014)

Sanusi Lamido Sanusi reversed the restrictions on the Interbank and WDAS markets. The official exchange rate remained stable at 148 Naira to 1 dollar, but the black market exchange rate climbed to 164 Naira to 1 dollar.

Godwin Emefiele and the Current Situation

Due to the collapse of oil prices and reduced inflow of dollars, the Nigerian government implemented strict measures such as banning the Interbank forex market and restricting the availability of forex. These measures aimed to conserving dollars for essential uses and prioritizing qualified recipients.

The Role of the Black Market

The existence of the black market has been a subject of debate. While some argue that it causes more harm than good, we must acknowledge that it has played a significant role in providing access to dollars for ordinary Nigerians. The market thrives due to limitations in accessing dollars through banks.

To address the current situation, the government should focus on proper regulation of the black market rather than entirely eliminating it. Stringent guidelines can be implemented, and non-compliant operators should be suspended. Additionally, measures should be taken to prevent large sums of money from being transacted outside the banking system. Establishing refineries and revitalizing the agricultural sector would also minimize Nigeria’s dependency on imported petroleum products.

Conclusion

The USD to Naira exchange rate in Nigeria’s black market is a constant point of interest for Nigerians. The rates fluctuate daily, and being aware of the current rates allows individuals to make informed financial decisions. Understanding the historical context of the Naira’s relationship with the US dollar provides valuable insights into the country’s economic history. As Nigeria moves forward, finding a stable and balanced exchange rate will contribute to a more prosperous economy.

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