Naira Loses Value on Black Market, Trading at Almost Double Official Rate
The Nigerian naira faced pressure on the black market today, February 10th, 2024, trading between ₦1,478 and ₦1,488 for one US dollar. This is nearly double the official rate of ₦886.89 set by the Central Bank of Nigeria (CBN).
Black Market vs. Official Rate:
The black market, also known as the parallel market, operates outside official channels and sets its own exchange rates based on supply and demand. This often means the naira trades weaker on the black market compared to the official rate.
How much is a dollar to naira today in the black market?
The current exchange rate for the dollar to naira on the parallel market as of February 10th, 2024, is detailed below:
- Purchase rate: 1,478.00 Nigerian Naira for one US dollar
- Sale rate: 1,488.00 Nigerian Naira for one US dollar
This indicates that to purchase a single US dollar in the parallel market today, you would need to spend 1,488.00 naira, while selling a US dollar would yield you 1,478.00 naira.
Why the Difference?
Several factors can influence this gap. Sometimes, people and businesses struggle to access dollars through official channels due to scarcity, restrictions, or complex procedures. This drives them to the black market, pushing up demand and weakening the naira.
Other factors like inflation, political uncertainty, and economic policies can also play a role.
What it Means:
A weaker naira on the black market can make imported goods more expensive, impacting businesses and consumers. It can also discourage foreign investment and hinder economic growth.
What’s Next?
The CBN aims to stabilize the naira and close the gap between the two markets. This might involve measures like increasing dollar supply, easing access to official channels, and addressing underlying economic issues.
Remember:
- These black market rates can vary depending on location and vendor.
- The official rate remains the benchmark for government transactions and other foreign currencies.
- A weaker naira on the black market can have various economic implications.
Stay Informed:
Keep an eye on news and updates from the CBN and financial institutions to stay informed about the naira’s exchange rate and developments in the foreign exchange market.