The exchange rate for a dollar to naira at Lagos Parallel Market (Black Market) players buy a dollar for N730 and sell at N743 on Thursday October 20th 2022, according to sources at Bureau De Change (BDC).
How Much Is Dollar To Naira And The Official Exchange Rate Today, 20th 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, 20th October, 2022
| Dollar to Naira (USD to NGN) | Black Market Exchange Rate Today |
| Selling Rate | 743 |
| Buying Rate | 730 |
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: Dollar To Naira Black Market Exchange Rate Today, 17th 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 20, 2022?
On Thursday, October 20, 2022, the black market exchange rate in Lagos was approximately ₦742 per US dollar. This marked a slight appreciation from ₦743/$1 recorded the previous day.
How did the black market rate compare to the official exchange rate on the same day?
On October 20, 2022, the official exchange rate at the Investors and Exporters (I&E) window closed at ₦441.13 per US dollar. This indicates a significant disparity of over ₦300 between the official and black market rates.
What factors contributed to the disparity between the black market and official exchange rates?
Several factors contributed to the widening gap between the black market and official exchange rates:
Limited access to official forex channels: Businesses and individuals often faced challenges accessing foreign currency through official means, leading them to the black market.
High demand for US dollars: Importers, travelers, and others created substantial demand for dollars, exerting pressure on the Naira.
Speculative activities: Anticipation of further Naira depreciation led to increased speculative buying of dollars.
Was there a difference between the black market and cryptocurrency P2P exchange rates on that day?
Yes, there was a slight difference. On October 20, 2022, the Naira traded at a minimum of ₦748.70 per US dollar on cryptocurrency peer-to-peer (P2P) platforms, slightly higher than the black market rate of ₦742/$1.
What was the trend of the black market exchange rate around that period?
The black market exchange rate for the Naira was on a depreciating trend during October 2022. For instance, it reached ₦755/$1 on October 21, 2022, indicating a continued weakening of the Naira against the US dollar.