The exchange rate for a dollar to naira at Lagos Parallel Market (Black Market) players buy a dollar for N720 and sell at N740 on Thursday October 6th 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, 6th October, 2022
| Dollar to Naira (USD to NGN) | Black Market Exchange Rate Today |
| Selling Rate | 740 |
| 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 Exchange Rate Today, 5th 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 6, 2022?
On October 6, 2022, the black market exchange rate in Lagos was ₦730 per US dollar for buying and ₦740 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 approximately ₦432.54 per US dollar on October 6, 2022. This indicates a significant disparity between the official and black market rates.
Why was there a significant difference between the black market and official exchange rates?
The disparity often arises due to factors such as foreign exchange scarcity, high demand for dollars, and restrictions on accessing foreign currency through official channels. These conditions can drive individuals and businesses to the parallel market, where rates are determined by supply and demand dynamics.
Is trading in the black market legal in Nigeria?
No, the Central Bank of Nigeria does not recognize the parallel market and has directed individuals seeking foreign exchange to approach their respective banks. Engaging in black market transactions is considered illegal and is discouraged by regulatory authorities.
Where can I find reliable information on historical black market exchange rates?
Websites like NgnRates.com provide daily updates on black market exchange rates, including historical data. However, it’s important to note that information from such sources may be based on user submissions and should be cross-referenced with other reliable platforms for accuracy.