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Exchange Rate Of Naira To Dollar In Black Market Today

The exchange rate of the Nigerian Naira to the United States Dollar has been a topic of great interest to Nigerians in recent times, especially those who engage in international transactions. In Nigeria, there are two major markets where foreign currencies are traded; the official market and the black market. While the official market is controlled by the Central Bank of Nigeria, the black market is unregulated and operates based on demand and supply forces.

What is the current exchange rate of Naira to Dollar in the black market?

As at the time of writing this article, the exchange rate of Naira to Dollar in the black market is approximately 1 USD to 480 NGN. This means that if you want to buy 1 US Dollar, you will have to pay 480 Naira in the black market.

Black Market Exchange Rate Of Naira To Dollar

Why is the exchange rate of Naira to Dollar so high in the black market?

The exchange rate of Naira to Dollar in the black market is higher than the official rate because of several factors. One of the major factors is the scarcity of foreign exchange in the official market. Due to the limited supply of foreign exchange in the official market, many individuals and businesses who need foreign exchange have to resort to the black market where they can get it at a higher rate.

Another factor that contributes to the high exchange rate in the black market is the high demand for foreign exchange by importers who need it to bring in goods from other countries. The high demand for foreign exchange puts pressure on the available supply in the market, leading to an increase in the exchange rate.

What are the implications of the high exchange rate of Naira to Dollar in the black market?

The high exchange rate of Naira to Dollar in the black market has several implications for the Nigerian economy and its citizens. One of the major implications is the increase in the cost of imported goods. Since many businesses have to source foreign exchange from the black market at a higher rate, they have to pass on the extra cost to consumers by increasing the prices of their goods and services.

Another implication of the high exchange rate in the black market is the increase in the cost of international transactions. Nigerians who engage in international transactions have to pay more Naira to get the same amount of foreign exchange, which reduces their purchasing power.

What can be done to reduce the high exchange rate of Naira to Dollar in the black market?

There are several measures that can be taken to reduce the high exchange rate of Naira to Dollar in the black market. One of the major measures is for the government to increase the supply of foreign exchange in the official market. This can be done by increasing exports, attracting foreign investment, and reducing the importation of non-essential goods.

Another measure that can be taken is to regulate the activities of the black market. This can be done by licensing and monitoring the activities of bureau de change operators who are major players in the black market. By doing this, the government can reduce the influence of the black market on the exchange rate of Naira to Dollar.

Conclusion

The exchange rate of Naira to Dollar in the black market is a major concern for Nigerians who engage in international transactions. The high exchange rate has several implications for the Nigerian economy and its citizens. However, there are measures that can be taken to reduce the high exchange rate, and it is important for the government to take action to address this issue.

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