Present Dollar Rate To Naira In Black Market
Introduction
The Nigerian economy has been struggling in recent times and this has led to a lot of changes in the exchange rate of the Naira to other currencies. One of the most important exchange rates in Nigeria is the Dollar to Naira exchange rate. This article will discuss the present dollar rate to Naira in the black market.
What is the Black Market?
The black market is an illegal market where goods and services are traded outside the control of the government. The black market exists in many countries, including Nigeria. In Nigeria, the black market is where foreign currencies are exchanged outside the official exchange rate set by the Central Bank of Nigeria (CBN).
The Current Dollar Rate to Naira in the Black Market
As of the time of writing this article, the current dollar rate to Naira in the black market is around 485 Naira to 1 US Dollar. This is about 33% higher than the official exchange rate set by the CBN.
Why is the Dollar Rate to Naira Higher in the Black Market?
The dollar rate to Naira is higher in the black market because of the high demand for foreign currencies in Nigeria. Many people in Nigeria need foreign currencies for various reasons, including travel, education, and business. However, the supply of foreign currencies in Nigeria is low, and this has led to a high demand for foreign currencies in the black market.
The Role of the Central Bank of Nigeria
The Central Bank of Nigeria (CBN) is responsible for regulating the foreign exchange market in Nigeria. The CBN sets the official exchange rate for the Naira and also regulates the activities of licensed exchange bureaus in Nigeria. However, the CBN cannot control the activities of the black market since it is an illegal market.
The Effects of the High Dollar Rate to Naira in the Black Market
The high dollar rate to Naira in the black market has several effects on the Nigerian economy. One of the effects is that it increases the cost of imported goods in Nigeria. Many goods in Nigeria are imported, and the high dollar rate to Naira in the black market makes it more expensive to import these goods.
Another effect of the high dollar rate to Naira in the black market is that it reduces the value of the Naira. When the value of the Naira is low, it becomes more expensive for Nigerians to buy goods and services.
Conclusion
In conclusion, the present dollar rate to Naira in the black market is around 485 Naira to 1 US Dollar. This rate is higher than the official exchange rate set by the CBN. The high dollar rate to Naira in the black market has several effects on the Nigerian economy, including increasing the cost of imported goods and reducing the value of the Naira. The Nigerian government needs to take steps to address the high demand for foreign currencies in Nigeria and reduce the activities of the black market.