Dollar to Naira Black Market Exchange Rate Today 2023 Abokifx

Hey there! Are you curious about the current exchange rate of the US Dollar to the Nigerian Naira in the black market? Well, you’re in luck because we’ve got all the information you need right here.

The Current Dollar to Naira Black Market Rate

Let’s dive right in and take a look at the current exchange rate between the US Dollar (USD) and the Nigerian Naira (NGN). We’ll compare the rates offered by banks with the rates in the black market.

Dollar to Naira Black Market Rate Today

You’ll be glad to know that the selling rate for 1 USD is 935 NGN, while the buying rate is 925 NGN. Keep in mind that these rates can fluctuate, so it’s always a good idea to double-check before making any transactions.

A Note to Keep in Mind

It’s important to note that if you have just a few hundred dollars in Nigeria, you’re considered well-off. In fact, you could be considered a rich person! On the other hand, if you want to sell 1 dollar right now, you can expect to receive 925 Naira for it.

Previously, it was reported that the exchange rate in Southend of Nigeria, specifically in Uyo, was 920 dollars. Now, let’s take a look at how the USD has been performing against the Naira recently.

USD to NGN Exchange Rate Analysis

USD is currently being traded at ₦935 in the black market in Lagos as of Monday, September 11, 2023. Last week, on Friday, September 8, 2023, the rate closed at ₦929, indicating a rise of 0.06% for USD against the Naira this week.

When we consider the entire month of September, the USD began at ₦925 on Friday, September 1, 2023. As of today, with the rate at ₦935, we can see a 0.10% increase in the USD to Naira exchange rate for this month.

Previous Rates and Market Trends

You might be wondering about the rates in the black market in previous days. Well, based on Premium Times reports, forex dealers in Uyo and Abuja closed at N925 and N935 per $1 at the black market. These rates were reported recently.

According to The Cable, the Nigerian Naira was exchanging at 935 to the dollar in certain markets in Lagos. However, it’s important to note that the Central Bank of Nigeria (CBN) has suspended the sale of dollars to BDCs (Bureau De Change) and has instructed banks to cater to the genuine demand of ordinary Nigerians who require dollars.

CBN currently recognizes the Investors and Exporters window as the only official exchange rate market. So, if you want to buy or sell dollars, you need to do it through this channel to stay within the legal boundaries.

Factors Influencing Foreign Exchange Rates

Now that we’ve covered the current rates, let’s take a moment to understand the various factors that affect the fluctuation of the Naira’s exchange rate. These factors can impact the value of the Naira vis-à-vis the Dollar.

Inflation Rates

Inflation plays a significant role in determining the black market exchange rate. If the Nigerian economy remains stable with controlled inflation, it will have a positive impact on the Naira. On the flip side, a declining Naira indicates higher prices of essential commodities on a daily basis.

Interest Rates

Monitoring interest rates is crucial. An increase in lending rates by banks can have a negative effect on the economy, causing it to contract and consequently leading to a depreciation of the Naira.

Government Debt

National debt has a considerable influence on investors’ confidence and the inflow of dollars into the economy. If the inflow of dollars is high, it will lead to a favorable appreciation of the Naira against the Dollar.

Speculation

Speculators often impact the Naira to Dollar exchange rate. Their actions, driven by the anticipation of financial gains, can cause the Naira to experience further depreciation.

Terms of Trade

Favorable terms of trade can also contribute to an increase in the value of the Naira against the Dollar. Unfortunately, Nigeria currently faces an imbalance in its trade terms, importing goods from countries like China and India.

Recession

Recessions are tough on economies and instill fear in investors, discouraging direct investment. Nigeria experienced a recession in 2016 and again in 2020 due to falling oil prices and the impact of the Covid-19 pandemic on the global economy.

So, as you can see, various elements come into play when it comes to determining the exchange rate between the Dollar and the Naira.

That’s all for now, folks! Remember, exchange rates can be quite dynamic, so stay informed and make any financial decisions wisely.