Dollar to Naira on the Black Market 15 Feb 2024

Dollar to Naira Black Market Today Rate 15 Feb 2024

The black market (aka parallel market) is where people buy and sell dollars (USD) and other currencies unofficially. The price, in Nigerian naira (NGN), is different from the official price set by the government.

Why does the black market exist?

Some people can’t get dollars at the official rate because there aren’t enough, or there are rules making it hard. So, they use the black market.

How much is a dollar on the black market today (February 15th, 2024)?

  • To buy a dollar, it costs ₦1,560.
  • To sell a dollar, you get ₦1,553.

This price can change depending on where you are and who you trade with.

How does this compare to the official rate?

The official rate is ₦1,459.67 per dollar. This is the price the government uses and is the basis for other currencies like euros and pounds.

The difference between the black market and official rate is called the “parallel market premium.”

  • high premium means people don’t trust the official rate or the government’s economic plans.
  • low premium means people are happy with the official rate and trust the government.

Remember:

  • The black market is unofficial and there are risks, like getting scammed.
  • It’s always best to check the latest rates before buying or selling dollars.

Naira Loses Value as Dollar Gets Harder to Find

The Nigerian currency, the Naira, got weaker against the US dollar on Wednesday, February 15th, 2024. This means it takes more Naira to buy one dollar. This happened because there were fewer dollars available to buy (supply dropped).

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Less Dollar, More Naira Needed:

  • Imagine you have oranges (Naira) and want to buy apples (dollars). If there are few apples, you need more oranges to get one apple. That’s what happened with Naira and dollars.
  • On Tuesday, you needed ₦1,499.07 to buy one dollar. But on Wednesday, it went up to ₦1,503.38. That’s a small rise, but not good news for the Naira.

Why Less Dollar?

  • The amount of dollars available to buy (supply) dropped sharply, by more than half! This makes them more valuable, like rare gems.

Where to Buy Dollars?

  • There are two main places:
    • Official market: Set by the government, but sometimes there aren’t enough dollars here.
    • Black market: Not official, but riskier and often has a higher price for dollars.
  • On Wednesday, the official market price went up, as we mentioned.
  • In the black market, the price also went up, reaching ₦1,545 per dollar.

Government Says Relax, We Got This:

  • The Central Bank of Nigeria (CBN) says the situation is under control and the exchange rate will be stable.
  • However, since late January, the Naira has been fluctuating between ₦1,400 and ₦1,500 per dollar, showing some instability.

Remember:

  • A weaker Naira means some things imported from other countries, like phones or fuel, might become more expensive.
  • The CBN is trying to keep things stable, but it’s a complex situation.

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