Dollar to Naira Exchange Rate Hits New High in the Black Market
Lagos, Nigeria – On Friday, October 6th, 2023, the parallel market, often referred to as the black market, witnessed a significant shift in the exchange rate of the United States Dollar (USD) to the Nigerian Naira (NGN). This development has raised eyebrows and concerns among both traders and the general public.
According to sources within the Bureau De Change (BDC) industry, the exchange rate for a US dollar to the Nigerian Naira stands at a buying rate of N995 and a selling rate of N998 in the Lagos Parallel Market. This represents a notable increase from previous rates and indicates a continuous depreciation of the Naira in the unofficial exchange market.
This surge in the black market exchange rate highlights the persistent challenges faced by the Nigerian economy, including foreign exchange scarcity, inflationary pressures, and economic instability. It also underscores the importance of maintaining a stable and competitive forex market to support businesses and economic growth.
It’s essential to note that the Central Bank of Nigeria (CBN) officially does not recognize the parallel market and has consistently discouraged individuals from engaging in forex transactions outside of the regulated banking system. The CBN has urged Nigerians to use established banking channels for their foreign exchange needs, emphasizing the need for transparency and adherence to official exchange rates.
Despite the CBN’s stance, the black market continues to play a significant role in the forex landscape, as it often provides a more accessible source of foreign currency for many Nigerians, particularly in urgent or small-scale transactions.
Dollar to Naira Black Market Rate Today
|Dollar to Naira (USD to NGN)||Black Market Exchange Rate Today|
Please note that the rates you buy or sell forex may be different from what is captured in this article because prices vary.
The World Bank has revealed that the Nigerian currency is part of the worst-performing currencies in Africa, Naija News reports.
The World Bank, in its report titled, ‘Africa’s Pulse: An analysis of issues shaping Africa’s economic future (October 2023 | Volume 28),’ said the Naira weakened by nearly 40 per cent against the US dollar since a mid-June devaluation.
According to the global bank, “So far this year, the Nigerian naira and the Angolan kwanza are among the worst performing currencies in the region: these currencies have posted a year-to-date depreciation of nearly 40 per cent.
“The weakening of the naira was triggered by the central bank’s decision to remove trading restrictions on the official market. For the kwanza, it was the decision of the central bank to stop defending the currency as a result of low oil prices and greater debt payments.”
The report also revealed that other currencies across the continent that witnessed significant losses thus far in 2023 include South Sudan (33 per cent), Burundi (27 per cent), the Democratic Republic of Congo (18 per cent), Kenya (16 per cent), Zambia (12 per cent), Ghana (12 per cent), and Rwanda (11 per cent).
The recent fluctuations in the exchange rate serve as a reminder of the challenges facing Nigeria’s financial sector and the importance of effective forex policies to stabilize the economy. As discussions surrounding these developments continue, both traders and the public will be closely monitoring the forex market for any further shifts in the exchange rate.