Dollar to Naira Black Market Exchange Rate Today – October 2, 2023: Abokifx Dollar Rate Today.
In the ever-evolving financial landscape of Nigeria, the Dollar to Naira Black Market Exchange Rate, also known as the parallel market, has seen the US dollar gain more ground against the Nigerian naira. This unofficial market, where foreign currencies are traded without official government approval, has become a preferred reference point for many Nigerians. It is considered a more accurate reflection of the real economic situation compared to the official exchange rates.
What is the Dollar to Naira Black Market Exchange Rate, specifically on October 2, 2023?
According to reports from bureau de change (BDC) operators, the black market exchange rate for the US dollar to naira stands as follows:
- Buying: 1000 NGN for $1
- Selling: 1005 NGN for $1
In simple terms, black market traders are buying one US dollar for 1000 naira from customers and selling it for 1005 naira, indicating a considerable difference compared to official rates.
Read Also Dollar to Naira Exchange Rates: CBN and Bank Rates as of October 2, 2023
Speaking of official rates, the Central Bank of Nigeria (CBN) sets its own exchange rates, and as of October 2, 2023, they were as follows:
- Buying: 770.50 NGN for $1
- Selling: 772.50 NGN for $1
Under these official rates, the CBN purchases one US dollar for 772.50 naira and sells it for 770.50 naira through authorized dealers.
Additionally, data reveals that the average bank exchange rate for the dollar to naira on the same date was:
- Buying: 790 NGN for $1
- Selling: 782.20 NGN for $1
This means that banks were selling one US dollar for 782.20 naira and buying it from customers for 790 naira.
Now, let’s delve into the factors contributing to the depreciation of the naira against the dollar:
1. Oil Prices: Nigeria heavily relies on oil exports for foreign exchange earnings. When oil prices drop, it diminishes Nigeria’s forex inflow and negatively impacts its balance of payments.
2. Forex Demand: Nigeria faces substantial demand for forex to cover imports, service debts, repatriate profits, and meet various obligations. This high demand often surpasses the available supply, putting pressure on the naira.
3. Forex Supply: Nigeria’s forex supply stems from sources like oil exports, non-oil exports, remittances, investments, loans, and reserves. These supplies can be influenced by external factors such as oil price fluctuations, global economic conditions, sanctions, and currency conflicts.
4. CBN Policies: The Central Bank of Nigeria employs various policies and interventions to manage the naira’s exchange rate and stabilize the forex market. These measures include the multiple exchange rate system, the forex ban list, the forex allocation system, the forex intervention program, and the forex futures market.
5. Market Sentiments: Sentiments in the market, including expectations, confidence, speculation, rumors, and emotions, play a significant role in influencing the demand and supply of forex. They can affect the behavior of forex dealers and customers.
The exchange rate of the dollar to naira serves as a crucial economic indicator for Nigeria’s performance and stability. This rate fluctuates across different markets, including the CBN, banks, and the black market. While the CBN and bank rates are officially regulated, the black market rate is determined by market forces.
What is the Dollar to Naira Black Market Exchange Rate today.
As of October 2, 2023, the CBN exchange rate for the dollar to naira was 772.50 NGN for $1, the bank exchange rate stood at 782.20 NGN for $1, and the black market rate was 1005 NGN for $1.
