How much is dollar to naira in black market?
The exchange rate for a dollar to naira at Lagos Parallel Market (Black Market) players buy a dollar for N720 and sell at N745 on Wednesday October 5th 2022, according to sources at Bureau De Change (BDC).
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, 5th October, 2022
| Dollar to Naira (USD to NGN) | Black Market Exchange Rate Today |
| Selling Rate | 745 |
| Buying Rate | 720 |
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 Rate Today, October 2nd 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, 24th August 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 5, 2022?
On October 5, 2022, the black market exchange rate in Lagos was approximately ₦730 per US dollar for buying and ₦742 per US dollar for selling.
How did the black market rate compare to the official exchange rate on that day?
The official exchange rate, as recorded by the Central Bank of Nigeria (CBN), was around ₦437.25 per US dollar on October 5, 2022. This indicates a significant disparity between the official and black market rates.
Why was there such a large gap between the black market and official exchange rates?
The disparity was primarily due to limited access to foreign currency through official channels, leading individuals and businesses to seek dollars in the black market, where demand drove up the exchange rate. Additionally, the CBN’s restrictions on forex allocations contributed to the widened gap.
Was the black market rate stable around that period?
The black market rate was experiencing volatility during that time. For instance, on October 4, 2022, the rate was slightly higher, with dollars selling at ₦742. Such fluctuations were common due to market dynamics and forex supply constraints.
Is it legal to trade currency on the black market in Nigeria?
While black market trading is prevalent, it operates outside the official financial system and is not sanctioned by the CBN. The CBN advises individuals to conduct foreign exchange transactions through licensed banks and authorized dealers to ensure compliance with regulations.