The exchange rate for a dollar to naira at Lagos Parallel Market (Black Market) players buy a dollar for N830 and sell at N865 on Saturday November 5th 2022, according to sources at Bureau De Change (BDC).
How Much Is Dollar To Naira And The Official Exchange Rate Today, 6th 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, 6th November, 2022
| Dollar to Naira (USD to NGN) | Black Market Exchange Rate Today |
| Selling Rate | 850 |
| Buying Rate | 870 |
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 November 6, 2022?
On November 6, 2022, the black market exchange rate for the US dollar to Nigerian naira ranged between ₦800 and ₦820 per $1.
How did the black market rate compare to the official exchange rate on that date?
The official exchange rate at the Investors and Exporters (I&E) window was approximately ₦445.5 per $1 on November 4, 2022. This indicates a significant disparity, with the black market rate being nearly double the official rate.
What factors contributed to the high black market rate on November 6, 2022?
Several factors contributed to the elevated black market rate:
Increased Demand for USD: There was a surge in demand for the US dollar due to economic uncertainties and the need for foreign currency for imports and travel.
Limited Supply: The Central Bank of Nigeria (CBN) had restrictions on foreign exchange allocations, leading to a scarcity of dollars in the official market.
Speculation: Anticipation of further naira depreciation led to speculative buying of dollars, driving up the black market rate.
Were there any significant events around that time influencing the exchange rate?
Yes, the announcement by the CBN to redesign higher denomination naira notes led to increased demand for dollars as people sought to hedge against potential devaluation. This move created uncertainty and contributed to the spike in the black market rate.nairametrics.com
How did the black market rate trend in the days following November 6, 2022?
Following November 6, 2022, the black market rate continued to rise, reaching approximately ₦875 per $1 on November 7 and ₦855 per $1 on November 8. This upward trend was due to sustained demand for dollars and limited supply in the official market.