This page contains current information about the dollar-to-naira exchange rate today in the black market as well as the official Central Bank of Nigeria rate. This article is well detailed enough, and it will be beneficial for you, as it will keep you updated with the dollar to naira exchange rate today in about fx(or black market exchangers) so that you will not be cheated by them. Read through and get yourself informed.
As a Nigerian who is interested in the Forex market or maybe you carry online payment transactions daily in foreign payment gateways, it is proper for you to get yourself acquainted with the current exchange rate of Dollar to Naira in the black market or the CBN exchange rate of Dollar to Naira. This is the more reason why here at Blogginfotech, we promise to bring you real-time updates on the dollar-to-naira exchange rate both in the black market and the official CBN (Central Bank of Nigeria) rate. You can bookmark or always check on this page for future values or exchange rates as the updates are done in real-time.
Apart from giving you the latest updates of the United States Dollar to the Nigerian Naira exchange rates, this article also gives you an insight into some facts you need to know about the two currencies. Also at the tail end of this article, you will find some terms you should get yourself acquainted with to understand this post properly.
The United States Dollar (USD)
The United States Dollar (USD) is unarguably one of the strongest currencies in the world today. It is accepted in most parts of the world as a means of payment for services or transactions carried out online and offline. A hundred Cents make up a Dollar, and the symbols of Cent and Dollar respectively are (¢) and $. The code for the United States Dollar is USD.
Some other countries also make use of the Dollar as their official currency but their value and exchange rates are quite different from that of the United States Dollar. Examples of such countries include; Ecuador, Zimbabwe, Canada, East Timor, Palau, Federated States of Micronesia, Panama, Turks and Caicos Island, Marshall Island, El Salvador, Caribbean Netherlands, British Virgin Islands, etc. One good fact about the United States Dollar is that it has an inflation rate of 0,10%.
The Nigeria Naira (NGN)
The Naira is the currency used by the Federal Republic Of Nigeria. The exchange rate of the Nigeria Naira is experiencing a reduction in Value at the moment, but before now it has maintained a stand of being one of the strongest currencies in Africa during the 20th century. In the present 21st century especially in recent times, things have really changed negatively. The foreign exchange rate of the Nigerian Naira has been on the decline at an alarming rate. One hundred Kobo makes up a Naira and the symbol for the Naira is ₦, while the code is simply written as NGN.
Also read: Pound to Naira Exchange Rate (Black Market & CBN) Today
Analyzing the Disparity Between Dollar to Naira Exchange Rates: Black Market vs. CBN
The exchange rate between the United States Dollar (USD) and the Nigerian Naira (NGN) has been a topic of intense interest and debate for years. Of particular note is the substantial difference between the exchange rates offered in the black market and those set by the Central Bank of Nigeria (CBN). This glaring disparity has significant implications for Nigeria’s economy and its citizens.
Understanding the Exchange Rate Disparity
The exchange rate represents the value of one currency in terms of another. In the case of the USD to NGN exchange rate, it indicates how much Nigerian Naira one can obtain in exchange for a US Dollar. Exchange rates are influenced by a multitude of factors, including economic indicators, market sentiment, inflation, interest rates, political stability, and more.
The CBN, Nigeria’s central bank, plays a crucial role in determining the official exchange rate. It attempts to maintain stability in the financial markets and safeguard the value of the Naira. To achieve this, the CBN frequently intervenes in the foreign exchange market by buying or selling foreign currencies.
The black market, on the other hand, operates outside the official channels and is driven by demand and supply dynamics. It is often characterized by informal, unregulated transactions. The black market exchange rate is influenced by factors such as scarcity of foreign exchange, capital flight, inflation, and the perceived risk associated with the country’s economic and political environment.
Factors Contributing to the Discrepancy
Several factors contribute to the stark difference between the black market and CBN exchange rates:
Foreign Exchange Restrictions
The CBN has, at times, imposed restrictions on access to foreign exchange to manage its reserves and control capital flight. These restrictions can create artificial shortages in the official market, leading to a divergence between the official and black market rates.
Parallel Market Demand
Individuals and businesses that are unable to access foreign exchange through official channels turn to the black market, driving up demand. This increased demand in the black market can result from importers seeking to evade official restrictions or individuals looking for a more favorable rate.
Speculation and Perception
Economic uncertainties, political instability, and concerns about the Naira’s long-term value can drive speculative behavior. Traders and individuals may choose the black market to protect themselves against potential devaluation or economic downturns.
Inflation
High inflation erodes the purchasing power of a currency, making it less attractive to hold. The Naira’s history of inflation has led many to seek alternatives, including foreign currencies. This heightened demand contributes to the black market’s popularity.
Implications and Challenges
The disparity between the black market and CBN exchange rates poses several challenges for Nigeria’s economy:
Economic Distortions
The dual exchange rate system can distort economic decision-making. Businesses and investors may face uncertainties due to unpredictable exchange rate movements, affecting long-term planning and investment.
Capital Flight
When individuals and businesses perceive better opportunities abroad or lose confidence in the Naira, they may move their capital out of the country, leading to capital flight. The black market can provide an avenue for this capital flight.
Inflationary Pressure
An overvalued official exchange rate can lead to price distortions and inflationary pressures. Businesses relying on imported goods at artificially low exchange rates may face difficulties sustaining their operations.
Weakened Reserves
Maintaining a stable exchange rate often requires the CBN to expend significant reserves. This can deplete foreign exchange reserves and limit the country’s ability to weather external shocks.
How Much Is Dollar To Naira Exchange Rate Today?
The United States Dollar to naira exchange rate today in the black market is quite different from the official CBN rate. We shall be giving you daily updates of both dollar rates on this page. Look at them below:
Dollar To Naira Exchange Rate in Black Market Today, September 2024
How much is the dollar to naira today in the black market? The dollar-to-naira exchange rate in the black market today is as follows:
Buying rate: 1 USD at NGN 163-
Selling rate: 1 USD at NGN 1645
This is the current price as updated today, You can always check this spot for daily updates (or periodic updates) because they are done in real-time. I normally update these rates once I receive updates from BDC operators or black market dealers. It is also known as the abokifx rate.
CBN Exchange Rate of Dollar to Naira Today
The current CBN exchange rate of the Dollar to Naira today is:
1 USD = NGN 1598
To get the Official CBN dollar rate today, or the daily CBN exchange rate of the Dollar to Naira, always check on this spot for future updates as the figures are been updated in real-time.
Terms You Should Know About Dollar to Naira Exchange Rate
The exchange rate of the United States Dollar (USD) to the Naira differs among financial institutions in Nigeria and various parallel or black markets in different states in the country. Concerning this, there are certain terms related to exchange rates you need to know and get yourself familiar with. They are as follows:
Dollar to Naira Exchange Rate
The exchange rate of Dollar to Naira is the exact equivalent of 1 Dollar in Naira. The exact rate at this present moment (because it is updated in real-time) is the one you have seen above.
Black Market Exchange Rate of Dollar to Naira
The black market, Aboki change rate, or parallel market can be used interchangeably as they all mean the same thing. This is the exchange rate you will get from Aboki exchangers within the streets. They are found in almost all major cities in Nigeria. The rate these aboki exchangers buy and sell Dollars for Naira is called the black market rate
CBN Exchange Rate
CBN like you already know stands for Central Bank of Nigeria. The CBN exchange rate is the amount in Naira they are buying or selling Dollars. If you will observe, these rates are always smaller when compared to abokifx or bank rates.
Nigerian Banks Exchange Rates
The Nigerian bank’s exchange rates are actually the exact amount various banks in Nigeria charge your Naira Master or Visa Card when you use it to buy products or services on foreign sites that only trade in Dollars. These rates vary among banks and they are usually higher than CBN rates.
Buying and Selling Rate
The buying rate is the amount in Naira that the Central Bank of Nigeria, Western Union, Money Gram, Nigerian Banks, or Aboki exchangers will give you for 1 Dollar. The selling rate, on the other hand, is the rate all the above-mentioned institutions will sell a Dollar to you when you pay in Naira. The selling rate is always higher than the buying rate.
You must get yourself acquainted with these terms when you are trying to trade or exchange dollars for Naira in various financial institutions or money exchangers.
Conclusion
If you observe the present Dollar to Naira exchange rate in the black market or CBN and compare it to that of a few years back you will quite agree with me that the Nigerian Naira is currently losing its value. Always check on this page for current information concerning the Nigerian Naira and its United States Dollar counterpart or simply bookmark this page on your browser for future reference. So, that is all about today’s dollar rate in Nigeria.
Other Articles
Pound to Naira Exchange Rate in September 2024
I like the work and its contents please send me both black market and cbn exchange rate on daily
Thanks Abdul for appreciating the content, I always try my best to give the current and accurate exchange rates.
Regarding daily updates been sent to your email, you can easily subscribe to this blog using the subscription box found on this page. Enter your email address and confirm the subscription notification. After all these, then you will be getting updates.
Thanks
It is informative article. I like it.
Thanks for liking it
Very useful article and I also love the quality of your write-up.
As a Forex person, I use Nairabarter for real-time tracking of how the Naira is performing amongst other currencies in the world including Bitcoin.
I will like to often have a current update on dollar exchange
Hi Smart, you can bookmark this page on your web browser or always check on it frequently
I every time spent my half an hour to read this website’s articles or
reviews all the time along with a mug of coffee.
Nice one
Good work, man. 👍
Please, I want to ask, where can I change dollar to Naira in Gwagwalada area? I have been changing using banks, but I felt so cheated all these while, because I have been using CBN exchange rate for 3 years plus now. But I realized that the best is black market according to what I leant from your post now.
Thank you very much.
Good day Michael! First I will like to thank you for appreciating my post. The issue is that I don’t stay in Abuja, and I cannot give you a specific direction or where you can locate a black market exchanger. But I will you to ask around, specifically from where Hausa people usually gather. I am 100% sure they will be many in Abuja.
The downward spiral of the naira to the US dollar is not a development out of the blues but rather predicated by the interplay of the forces of supply and demand in the forex market. Our consumption pattern is very egregious while our production is nothing to write home about. This explains why our GDP is very much on the low stance why our debts to revenue rises geometrically. Foreign Investors are scared stiff to invest in our sphere because of the banditry, terrorism, kidnapping and other related dastardly acts now engulfing our environmental dynamics. If nothing drastic is done by the monetary and fiscal authorities, the naira may hit #850 to US$1 if not more before the end of the year.
We buy US dollars for our strategic offshore operational programs in the likely event the rate is reasonable.
It’s a good thing you keep updating this page to maintain the freshness of the information. Regardless of all the CBN measures to tackle the Naira’s depreciation, it seems nothing will ever work to stop the crash. A lot of money is already being made off the crash.
Mr. Chibuzor I recommend you update this page 3 times a week since it seems to be very important in these times.
I always update the page whenever I get the current rates from black market exchangers