Exchange Rate Of Canadian Dollar To Naira Black Market
The Canadian Dollar (CAD) is the official currency of Canada, while the Nigerian Naira (NGN) is the official currency of Nigeria. The exchange rate of the Canadian dollar to Naira on the black market is a topic of interest to many people, especially those who engage in international trade or have relatives and friends in either country.
Factors Affecting the Exchange Rate
The exchange rate is affected by various factors such as inflation, interest rates, political stability, and economic growth. When a country experiences high inflation, its currency becomes less valuable compared to other currencies, and this results in a decrease in its exchange rate. Similarly, when interest rates in a country are high, foreign investors are attracted to buy the country's currency, leading to an increase in its exchange rate.
Canadian Dollar to Naira Black Market Exchange Rate
The exchange rate of the Canadian dollar to Naira on the black market is determined by the forces of demand and supply. The black market is an informal market where foreign currencies are bought and sold without the involvement of authorized dealers such as banks and bureaux de change.
The exchange rate on the black market is usually higher than the official exchange rate, and this is because of the limited supply of foreign currencies, which results in a high demand for them. The black market exchange rate is also affected by the value of the Canadian dollar in the international market and the level of competition among the black market dealers.
Current Exchange Rate
As of August 2021, the exchange rate of the Canadian dollar to Naira on the black market is about 1 CAD to 320 NGN. This rate is subject to change depending on various factors such as changes in the international market, government policies, and economic conditions in both countries.
Impact on International Trade
The exchange rate of the Canadian dollar to Naira on the black market has a significant impact on international trade between Canada and Nigeria. A high exchange rate means that Nigerian importers have to pay more Naira to buy Canadian goods, which makes the imports more expensive. This can lead to a decrease in the demand for Canadian goods in Nigeria, thereby affecting the export business of Canadian companies.
On the other hand, a low exchange rate means that Canadian importers can buy more Naira with their Canadian dollars, making Nigerian exports more affordable. This can lead to an increase in the demand for Nigerian goods in Canada, thereby boosting the export business of Nigerian companies.
Conclusion
The exchange rate of the Canadian dollar to Naira on the black market is an essential aspect of international trade and bilateral relations between Canada and Nigeria. It is affected by various factors, and its fluctuations can have significant impacts on the economies of both countries. Therefore, it is essential to monitor the exchange rate and take appropriate measures to ensure that it remains stable and favorable for international trade and investment.