Naira Dollar Exchange Rate Black Market (Black Market Dollar Rate Today)

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The naira dollar exchange rate black market is the unofficial rate at which the Nigerian naira is traded for the United States dollar in the parallel market. The parallel market consists of informal traders, such as bureau de change operators, who buy and sell foreign currencies outside the official channels regulated by the Central Bank of Nigeria (CBN).

The naira dollar exchange rate black market is important because it reflects the supply and demand of foreign exchange in Nigeria, as well as the confidence of the people in the naira. The black market rate is often used as a benchmark for transactions that require hard currency, such as international trade, remittances, travel, and education.

So, in this article, we will examine the factors that affect the naira dollar exchange rate black market, and how it impacts the Nigerian economy and society. We will also discuss the challenges and opportunities of closing the gap between the black market rate and the official and I&E window rates, and the implications for the future of the naira.

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Naira Dollar Exchange Rate History

It’s been long since the rise and fall of the Nigerian dollar exchange rate, and this has been a very incredible incident going  from bad to worse ever since, and so let’s talk about the exchange rate history which can be divided into three different periods: the fixed exchange rate regime, the managed float regime, and the floating exchange rate regime.

• The fixed exchange rate regime lasted from 1973 to 1986, when the naira was pegged to the USD at a rate of ₦0.658 to $1. This regime was aimed at stabilizing the naira and promoting economic growth, but it also led to overvaluation of the naira, depletion of foreign reserves, and increased dependence on oil exports.

• The managed float regime lasted from 1986 to 1999, when the naira was allowed to fluctuate within a band determined by the Central Bank of Nigeria (CBN). This regime was adopted as part of the Structural Adjustment Program (SAP) to liberalize the economy and reduce the fiscal deficit. However, this regime also resulted in high inflation, currency depreciation, and exchange rate volatility.

• The floating exchange rate regime started in 1999 and continues to date, when the naira is determined by the market forces of supply and demand. This regime is intended to enhance the efficiency and transparency of the foreign exchange market and to align the naira with its true value. Nevertheless, this regime also faces challenges such as exchange rate divergence, external shocks, and speculative attacks.

The naira dollar exchange rate history is a fascinating story of how the Nigerian currency has evolved over the decades in response to various economic and political factors. The history as seen abve is divided into three main periods: the fixed exchange rate regime (1973-1986), the managed float regime (1986-1999), and the floating exchange rate regime (1999-present). Each period had its own advantages and disadvantages, and its own impact on the Nigerian economy and society. 

Well moving on to the next paragraph let’s discuss the naira dollar exchange rate as at today.

Naira Dollar Exchange Rate As At Today

As of today, January 15, 2024, the naira dollar exchange rate black market is ₦1,295/$1. This means that one dollar will be exchanged for 1,295 naira in the black market. This rate is much higher than the official rate and the I&E window rate, which are the rates approved by the CBN for different segments of the foreign exchange market.

The official rate is the rate used by the CBN for its transactions with the government and some key sectors of the economy, such as oil and gas, power, and aviation. The official rate is currently ₦893.372/$1.

The I&E window rate is the rate used by investors and exporters who trade foreign exchange through the CBN-approved platform called the Investors and Exporters Foreign Exchange Window (I&E FX Window). The I&E window rate is determined by the market forces of supply and demand. The I&E window rate is currently ₦416.38/$1.

The difference between the black market rate and the official and I&E window rates shows the gap between the official and unofficial foreign exchange markets in Nigeria. The gap is influenced by various factors, such as the availability of foreign exchange, the exchange rate policies of the CBN, the inflation rate, the interest rate, the balance of payments, the fiscal and monetary policies of the government, and the political and economic stability of the country.

Frequently Asked Question

How much is $100 to Naira in black market? 

The black market exchange rate for $100 to Naira today (January 15, 2024) is between ₦124,000 and ₦129,5001. This means that you can buy $100 with ₦124,000 to ₦129,500, or sell $100 for ₦122,500 to ₦123,0001.

How much is $1000 Naira in dollars? 

The official exchange rate for $1000 Naira to dollars is $1.045. This means that you can convert ₦1000 to $1.04, or $1 to ₦957.59. This only implies to the official rate which is being set by the Central Bank of Nigeria (CBN) and may change from time to time.

Conclusion

So far in this article, we have explored the naira dollar exchange rate black market, which is the unofficial rate at which naira is traded for dollar in the parallel market. We have seen how the black market rate is influenced by various factors, such as the supply and demand of foreign exchange, the exchange rate policies of the CBN, the inflation rate, the interest rate, the balance of payments, the fiscal and monetary policies of the government, and the political and economic stability of the country. 

We have also examined how the black market rate impacts the Nigerian economy and society, such as the trade balance, the inflation rate, the purchasing power, the business confidence, and the welfare of the people.

Well, we hope that this article has been informative and insightful for you, and so if you have any questions or comments, please feel free to share them with us. We would love to hear from you and learn from your perspectives.

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