How much is dollar to naira in black market?

Question: How much is dollar to naira in black market?

If you are wondering how much is dollar to naira in black market, you are not alone. Many Nigerians are interested in knowing the exchange rate of the US dollar to the Nigerian naira in the parallel market, also known as the black market. This is because the black market rate is often different from the official rate set by the Central Bank of Nigeria (CBN).

The black market is a network of unofficial dealers who buy and sell foreign currencies at rates that are determined by the forces of demand and supply. The black market rate is usually higher than the official rate because of the scarcity of foreign exchange in the country.

According to NgnRates.com, as of June 10, 2023, the black market rate for the dollar to naira exchange was between ₦735 and ₦760 with an average of ₦747.50. However, this rate may vary depending on the location and availability of the dealers.

The black market rate is influenced by many factors, such as inflation, trade balance, monetary policy, fiscal policy, political stability, and market sentiment. The black market rate may also change frequently during the day as new information becomes available.

The black market rate is not the official rate and it is not regulated by the CBN. Therefore, it may not reflect the true value of the naira. The CBN has been trying to stabilize the exchange rate by intervening in the foreign exchange market and imposing some restrictions on access to foreign exchange.

The CBN official exchange rate as of June 10, 2023 was ₦415.37 to sell US dollar and ₦415.87 to buy USD with naira. This means that there is a significant gap between the official rate and the black market rate.

The black market rate is important for Nigerians who need foreign exchange for various purposes, such as travel, education, medical treatment, business, or personal use. However, it is also risky to deal with the black market dealers because they may not be trustworthy or reliable.

Therefore, it is advisable to use the official channels for obtaining foreign exchange whenever possible. The CBN has also introduced some initiatives to improve access to foreign exchange for legitimate users, such as the Investors and Exporters (I&E) window and the Naira 4 Dollar scheme.

In conclusion, the dollar to naira black market rate is a dynamic and volatile indicator of the value of the naira in relation to the US dollar. It is determined by the demand and supply of foreign exchange in the parallel market. It may differ significantly from the official rate set by the CBN. It is important for Nigerians who need foreign exchange to be aware of the current black market rate and its implications.

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