Black Market Exchange Rate Canadian Dollar To Naira
Introduction
The Canadian dollar is the official currency of Canada, and the Nigerian naira is the official currency of Nigeria. However, due to the fluctuating exchange rates and strict foreign exchange policies, many Nigerians resort to the black market to exchange their naira for Canadian dollars. In this article, we will discuss the black market exchange rate of Canadian dollar to naira and its implications.
Black Market Exchange Rate
The black market exchange rate of Canadian dollar to naira varies depending on various factors such as demand and supply, economic conditions, and government policies. As of July 2021, the black market exchange rate of Canadian dollar to naira is around 300 naira per Canadian dollar.
Implications
The black market exchange rate of Canadian dollar to naira has several implications for both Nigerians and Canadians. For Nigerians, it means that they have to pay more naira to get Canadian dollars, which can affect their purchasing power and standard of living. For Canadians, it means that their exports to Nigeria become more expensive, which can affect their trade balance and economic growth.
Causes
The black market exchange rate of Canadian dollar to naira is mainly caused by the strict foreign exchange policies of the Nigerian government, which limit the amount of foreign currency that can be obtained through official channels. This has led to a high demand for foreign currency, which is met by the black market. In addition, the economic conditions in Nigeria, such as inflation and high unemployment rates, also contribute to the black market exchange rate.
Solutions
To address the issue of the black market exchange rate of Canadian dollar to naira, the Nigerian government can relax its foreign exchange policies and allow more foreign currency to be obtained through official channels. This can reduce the demand for foreign currency on the black market and stabilize the exchange rate. In addition, the Nigerian government can also improve its economic conditions through policies such as job creation, infrastructure development, and inflation control.
Conclusion
The black market exchange rate of Canadian dollar to naira is a complex issue that has several implications for both Nigerians and Canadians. The Nigerian government can address this issue by relaxing its foreign exchange policies and improving its economic conditions. By doing so, the black market exchange rate can be reduced, and the standard of living of Nigerians and the trade balance of Canadians can be improved.