The exchange rate for a dollar to naira at Lagos Parallel Market (Black Market) players buy a dollar for N725 and sell at N745 on Monday October 17th 2022, according to sources at Bureau De Change (BDC).
How Much Is Dollar To Naira And The Official Exchange Rate Today, 17th October 2022?
Please note that the Central Bank of Nigeria (CBN) does not recognize the parallel market (black market), as it has directed individuals who want to engage in Forex to approach their respective banks. Also check their website cbn.gov.ng.
DOLLAR TO NAIRA BLACK MARKET RATE TODAY, 17th October, 2022
| Dollar to Naira (USD to NGN) | Black Market Exchange Rate Today |
| Selling Rate | 745 |
| Buying Rate | 725 |
Factors Influencing Foreign Exchange Rates
Here are some causes of the dwindling dollar to naira exchange rate;
Inflation Rates: It is well known that inflation directly impacts black market exchange rates. If the Nigerian economy can be stabilized and inflation is brought under control, the naira will benefit; however, if the naira continues to fall, it may indicate that food and other necessities are becoming more expensive daily.
Read Also: How Much Is Dollar To Naira In Black Market Today, 14th October 2022
Interest Rates: Another tool to keep an eye on is interest rates. If the interest rate at which banks lend money rises, it would harm the economy, causing it to contract and, as a result, the value of the naira to fall.
Government Debt: National debt can impact investor confidence and, as a result, the influx of funds into the economy. If inflows are high, the naira exchange rate will rise in favour of the naira.
Speculators: Speculators frequently impact the naira-to-dollar exchange rate. They stockpile money in anticipation of a gain, causing the naira to plummet even lower.
Read Also: Dollar To Naira Black Market Rate Today, October 2nd 2022
Conditions of Trade: Favorable trade terms will lead to an increase in the value of the naira to the dollar, although Nigeria is currently experiencing a trade deficit. Everything comes from China, India, and the majority of Asian countries.
FAQs:
What was the black market exchange rate for USD to NGN on October 17, 2022?
On October 17, 2022, the black market exchange rate for USD to NGN ranged between ₦725 and ₦745 per $1, with ₦742/$1 being a commonly reported rate.
How did the black market rate compare to the official CBN rate on that day?
The official exchange rate set by the Central Bank of Nigeria (CBN) on October 17, 2022, was approximately ₦435 per $1. This indicates a significant disparity of over ₦300 between the official and black market rates.
Why was there such a large gap between the official and black market rates?
The disparity was primarily due to limited access to foreign currency at the official rate, leading individuals and businesses to seek dollars in the black market, where demand drove up the exchange rate.
Was the Naira’s depreciation a sudden occurrence?
No, the Naira’s depreciation had been ongoing due to factors like declining oil revenues, inflation, and foreign exchange shortages. The rate of ₦742/$1 on October 17, 2022, reflected a continuation of this trend.
What impact did this exchange rate have on the Nigerian economy?
The weakened Naira increased the cost of imports, contributing to higher inflation rates. It also affected businesses reliant on imported goods and services, leading to increased operational costs and potential price hikes for consumers.