The exchange rate for a dollar to naira at Lagos Parallel Market (Black Market) players buy a dollar for N740 and sell at N760 on Sunday October 25th 2022, according to sources at Bureau De Change (BDC).
How Much Is Dollar To Naira And The Official Exchange Rate Today, 25th 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, 25th October, 2022
| Dollar to Naira (USD to NGN) | Black Market Exchange Rate Today |
| Selling Rate | 760 |
| Buying Rate | 740 |
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 black market rate today – October 23rd 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 official exchange rate on October 25, 2022?
The official exchange rate, as reported by financial data sources, was approximately ₦436.68 per $1.
Why was there a significant difference between the black market and official rates?
The disparity between the black market and official exchange rates often arises due to factors such as:
Limited access to foreign currency: Restrictions on foreign exchange allocations can drive demand to the black market.
Economic policies: Government controls and monetary policies may not align with market dynamics.
Speculation and demand: High demand for dollars, especially for imports and savings, can inflate black market rates.
Was the Naira’s depreciation on October 25, 2022, part of a broader trend?
Yes, the Naira had been experiencing a gradual depreciation in the black market throughout 2022. For instance, earlier in October, rates were reported between ₦720 and ₦740 per $1.
Did the Central Bank of Nigeria (CBN) recognize the black market rates?
No, the CBN does not recognize the black market (parallel market) rates. It has consistently advised individuals and businesses to conduct foreign exchange transactions through official channels, such as authorized banks.
How did the black market rates on October 25, 2022, compare to previous days?
On October 24, 2022, the black market rates were reported as:naijanews.com
Buying Rate: ₦749 per $1
Selling Rate: ₦765 per $1
This indicates that the rates remained stable between October 24 and 25, 2022.