Dollar to Naira Black Market Exchange Rate – September 23, 2024 Latest Update
Dollar to Naira Exchange Rate: September 23, 2024 – Black Market and CBN Rates.
As Many Nigerians continues to navigate economic challenges, the dollar-to-naira exchange rate remains a focal point for those engaged in foreign trade, investments, and travel.
The black market, also known as the parallel market or Aboki FX, often reflects rates different from the official Central Bank of Nigeria (CBN) rates. Today, the exchange rates offer insight into the fluctuating value of the naira.
Current Exchange Rates Today.
Dollar to Naira Black Market Exchange Rate (Parallel Market):
- Buying Rate: ₦1,657
- Selling Rate: ₦1,663
Dollar To Naira CBN Official Rates:
- Buying Rate: ₦1,650
- Selling Rate: ₦1,652
Pounds and Euro to Naira Exchange Rates
Pounds to Naira (CBN Rates):
- Buying Rate: ₦2,176
- Selling Rate: ₦2,180
Euro to Naira (Black Market Rates):
- Buying Rate: ₦1,805
- Selling Rate: ₦1,810
Online Exchange Platforms: Geegpay and Grey
Geegpay Rates:
- EUR (€): Buying at ₦1,798.03, Selling at ₦1,800.55
- GBP (£): Buying at ₦2,120, Selling at ₦2,125
- USD ($): Buying at ₦1,650, Selling at ₦1,670
Grey Rates:
- EUR (€): Buying at ₦1,800.03, Selling at ₦1,802
- GBP (£): Buying at ₦1,902, Selling at ₦2,015
- USD ($): Buying at ₦1,655, Selling at ₦1,660
Understanding Dollar to Naira Black Market Exchange Rate.
What is the Black Market?
The black market is an unofficial exchange channel where currencies are traded without government regulation. Due to high demand and limited supply, this market often offers more competitive rates.
Why Do People Use the Black Market?
- Favorable Rates: Higher than official rates.
- Accessibility: Easier to obtain foreign currency without stringent regulatory requirements.
Factors Influencing Black Market Rates
Economic Policies:
Government decisions on interest rates, inflation control, and forex regulations by the CBN directly affect the naira’s value. These policies can stabilize or destabilize the exchange rates.
Supply and Demand:
The availability of foreign currency versus its demand significantly influences exchange rates. A shortage of foreign currency or high demand leads to naira depreciation.
Political Stability:
Geopolitical events and internal political stability affect investor confidence. Political unrest or uncertainty can cause the naira to depreciate, while stability strengthens it.
Global Economic Conditions:
Global market conditions, such as oil prices, international economic trends, and global inflation rates, influence the naira’s value. For instance, a significant drop in oil prices negatively impacts Nigeria’s economy.
Comparing Dollar to Naira Official and Black Market Rates
Why the Disparity?
- Supply and Demand: Limited availability in the official market drives people to the black market.
- Regulatory Restrictions: CBN imposes limits on forex availability, leading to higher black market rates.
- Economic Instability: Fluctuations in oil prices and inflation prompt people to seek more favorable black market rates.
Impact on the Economy:
High black market rates can:
- Inflation: Increase costs for imported goods.
- Investment: Deter foreign investment due to economic instability.
- Trade: Benefit exporters while imposing higher costs on importers.
Using the Parallel Market Safely
Tips for Transactions:
- Verify Rates: Check reliable sources like Aboki FX for the latest rates.
- Reputable Dealers: Engage with trusted Bureau De Change operators to avoid scams.
FAQs on Dollar to Naira Exchange Rate
How much is a dollar to naira today in the black market?
The buying rate is ₦1,630, and the selling rate is ₦1,640 as of September 9, 2024.
Why does the black market offer higher rates than the CBN?
The black market rates are driven by supply and demand dynamics, regulatory restrictions, and economic instability.
Is it legal to trade forex in the black market?
While the CBN discourages it, many engage in the black market due to the unavailability of sufficient forex through official channels.
What are the risks of trading in the black market?
Among these risks are fluctuating rates, possible fraud, and the illegality of such transactions.
Can the CBN influence black market rates?
The CBN can only influence these rates through monetary policy, forex interventions, and regulatory measures; it has no direct control over the black market.
How often do black market rates change?
Rates can change daily or even multiple times per day, depending on market conditions and economic news.
Conclusion on Dollar to Naira Black Market Rate Today
The black market dollar-to-naira exchange rate is shaped by a complex interplay of economic factors, regulatory frameworks, and market dynamics. For many Nigerians, this isn’t just a statistic but a reality that highlights the profound challenges and opportunities within the Nigerian economic landscape. The rates, along with their underlying factors, play a crucial role in making financial decisions.
Latest Forex news highlights in Nigeria for today, September 23, 2024:
The latest Forex news highlights in Nigeria for today, September 23, 2024:
- Nigeria’s FX Reserves Hit New High Amid Naira Gains: Nigeria’s foreign exchange reserves have reached a new high, with a net increase of $2.35 billion monthly since the beginning of the year. This growth has positively impacted the naira, which has appreciated significantly against the US dollar.
- External Reserves Reach 22-Month High: Nigeria’s external reserves have hit a 22-month high of $37.31 billion, reflecting significant foreign inflows. Despite this, the naira remains one of the worst-performing currencies globally, having depreciated by 49.56% against the dollar over the past year.
- Naira Appreciates in NAFEX Market: The naira has shown a massive recovery against the US dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEX), appreciating by over N100 against the dollar.
- CBN’s New FX Rules Impact Market: The Central Bank of Nigeria (CBN) has introduced new foreign exchange rules for Bureau De Change (BDC) operators, aimed at stabilizing the naira and improving FX liquidity
- Domestic Dollar Bond Sale Boosts Reserves: The successful sale of a government-issued domestic dollar bond has contributed to a $621.2 million increase in Nigeria’s foreign exchange reserves over a 10-day period.
- Forex Market Sees 136% Surge in Q1 2024: Nigeria’s foreign exchange market experienced a remarkable turnaround in the first quarter of 2024, with inflows surging by 136% compared to the entire year of 2023.
- Government Efforts to Eliminate Multiple Exchange Rates: The Nigerian government is making strides towards eliminating multiple exchange rates, which has been a long-standing issue affecting the country’s FX market.
- Impact of Remittance Inflows on FX Reserves: Remittance inflows from Nigerians abroad have significantly contributed to the increase in the country’s foreign exchange reserves.
- AfreximBank Oil Facility Boosts Reserves: Nigeria received a $3.3 billion oil facility from AfreximBank, further bolstering the country’s foreign exchange reserves
- World Bank Loans Support FX Reserves: The World Bank Group has provided $2.25 billion in loans to Nigeria, aiding in the stabilization of the country’s foreign exchange reserves.
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