Current Exchange Rate Dollar To Naira In Black Market
The Beginning of the Nigerian Naira
The Nigerian naira was introduced in 1973, replacing the pound sterling as the official currency of Nigeria. At the time, one US dollar was worth 0.658 naira.
The Exchange Rate Today
Today, the exchange rate of the dollar to naira in the black market is around 1 USD to 485 NGN. This is a significant difference from the official exchange rate of around 1 USD to 380 NGN.
Reasons for the Disparity
The disparity between the official exchange rate and the black market exchange rate is due to several factors. One of the main reasons is the limited supply of dollars in the official market, which leads to a higher demand in the black market.
The Impact on the Nigerian Economy
The disparity between the official exchange rate and the black market exchange rate has significant implications for the Nigerian economy. It creates an opportunity for corruption, as individuals can buy dollars at the official rate and sell them on the black market for a profit.
The Role of the Central Bank of Nigeria
The Central Bank of Nigeria is responsible for setting the official exchange rate and managing the supply of dollars in the market. However, the bank has been criticized for its inability to effectively manage the exchange rate and prevent the disparity between the official and black market rates.
The Future of the Exchange Rate
The future of the exchange rate between the dollar and naira in the black market is uncertain. It will depend on several factors, including the policies of the Central Bank of Nigeria, the global economic climate, and the level of demand for dollars in Nigeria.
Conclusion
The current exchange rate of the dollar to naira in the black market is a significant issue in the Nigerian economy. The disparity between the official and black market rates has implications for corruption and economic stability. It is important for the Central Bank of Nigeria to effectively manage the exchange rate and address the factors that contribute to the disparity.