Canadian Dollar To Naira Exchange Rate Today Black Market
Canada is one of the largest and most developed countries in the world. It is a G7 country and ranks high on the Human Development Index. The Canadian dollar is the official currency of Canada and is abbreviated as CAD. In Nigeria, the official currency is the Nigerian Naira, abbreviated as NGN. The exchange rate between the Canadian dollar and the Nigerian Naira is an important economic indicator for both countries.
What is the current exchange rate between CAD and NGN?
The current exchange rate between the Canadian dollar and the Nigerian Naira varies depending on the market. The official exchange rate is set by the Central Bank of Nigeria (CBN), but there is also a black market where currency traders buy and sell currencies at a different rate. As of August 2021, the official exchange rate is around 1 CAD to 318 NGN, while the black market rate is around 1 CAD to 440 NGN.
Why is there a difference between the official and black market exchange rates?
The difference between the official and black market exchange rates is due to several factors. One of the main reasons is the scarcity of foreign exchange in Nigeria. The CBN sets the official exchange rate based on a basket of currencies, but it does not always have enough foreign exchange reserves to meet demand. This leads to a situation where people who need foreign exchange are willing to pay a higher price for it on the black market.
Another reason for the difference is the risk involved in trading on the black market. Currency traders on the black market are not regulated by the government and may engage in illegal activities. This makes it riskier to trade currencies on the black market, which pushes up the price.
What are the implications of the exchange rate for Nigeria?
The exchange rate between the Canadian dollar and the Nigerian Naira has important implications for the Nigerian economy. Nigeria is heavily dependent on imports, especially of petroleum products, which are priced in US dollars. A weaker Naira makes imports more expensive, which can lead to higher inflation and lower living standards for Nigerians.
On the other hand, a weaker Naira can also make Nigerian exports more competitive in international markets, which can boost economic growth and employment. This is why the Nigerian government tries to maintain a stable exchange rate to balance these competing interests.
What are the implications of the exchange rate for Canada?
The exchange rate between the Canadian dollar and the Nigerian Naira also has implications for Canada. Canada is a major exporter of commodities, especially oil, which is also priced in US dollars. A stronger Canadian dollar can make Canadian exports more expensive, which can reduce demand and hurt the Canadian economy.
On the other hand, a weaker Canadian dollar can make Canadian exports more competitive in international markets, which can boost economic growth and employment. This is why the Bank of Canada tries to maintain a stable exchange rate to balance these competing interests.
Conclusion
The exchange rate between the Canadian dollar and the Nigerian Naira is an important economic indicator for both countries. The current black market exchange rate is around 1 CAD to 440 NGN, which is much higher than the official rate. The difference is due to factors such as the scarcity of foreign exchange in Nigeria and the risk involved in trading on the black market. The exchange rate has important implications for both countries, especially for Nigeria, which is heavily dependent on imports.