As of September 23, 2024, the exchange rate for the U.S. Dollar (USD) to the Nigerian Naira (NGN) in the black market, also known as the parallel market, was approximately ₦1,628.77 per $1. This rate reflects the average rate for that day, with variations depending on location and market conditions.
Black Market Exchange Rate Today, 23rd September:
Factors Influencing the Exchange Rate
Several factors contribute to the fluctuations in the USD/NGN exchange rate in the black market:
Supply and Demand: The availability of U.S. Dollars and the demand for them in Nigeria significantly impact the exchange rate.
Economic Policies: Government policies, including foreign exchange controls and import restrictions, can affect the supply of dollars.
Inflation Rates: Higher inflation in Nigeria compared to the U.S. can lead to a depreciation of the Naira.
Global Economic Conditions: Global events and economic conditions can influence investor confidence and the flow of capital into Nigeria.
Comparison with Official Exchange Rates
On the same day, the official Central Bank of Nigeria (CBN) exchange rate was approximately ₦767.54 per $1. This significant difference underscores the disparity between the official and parallel market rates, often attributed to the limited supply of foreign currency through official channels. Wikipedia
Impact on Nigerians
The wide gap between the official and black market exchange rates affects various sectors:
Importers and Exporters: Importers face higher costs when purchasing foreign goods, while exporters may benefit from favorable rates when converting earnings.
Travelers: Nigerians traveling abroad may find it more expensive to obtain foreign currency through official channels.
Remittances: Individuals receiving money from abroad may experience differences in the amount received, depending on the exchange rate used.
FAQs
What is the black market exchange rate for USD to NGN?
The black market exchange rate fluctuates based on supply and demand dynamics. As of September 23, 2024, it was approximately ₦1,628.77 per $1.
Why is the black market rate higher than the official rate?
Limited access to foreign currency through official channels and increased demand contribute to the higher black market rate.
Can I legally exchange currency at the black market rate?
While it’s common, engaging in black market currency exchange is illegal in Nigeria and can expose individuals to risks.
How can I get the best exchange rate?
Monitoring both official and parallel market rates, and considering the timing and method of exchange, can help secure a favorable rate.
What are the risks of using the black market for currency exchange?
Risks include exposure to counterfeit currency, legal consequences, and potential scams.
Read Also: Foreign exchange Shortage: Banks Droop International Transactions On Naira Debit Cards
Conclusion
The exchange rate between the U.S. Dollar and the Nigerian Naira in the black market on September 23, 2024, highlights the ongoing economic challenges in Nigeria. Understanding these dynamics is crucial for individuals and businesses engaged in foreign currency transactions.
For the most current exchange rates, it’s advisable to consult reputable sources and consider both official and parallel market rates