Dollar to Naira black market exchange rate today October 20, 2023

Dollar to Naira black market exchange rate today October 20, 2023

Daily Dollar to Naira black market exchange rate today, Friday, October 20, 2023 in Nigeria can be accessed below. ABOKIFX – Your daily Naira exchange rate.  Dollar to naira today black market in Nigeria  This page contains Dollar to Naira yesterday, Dollar to Naira black market exchange rate today, Aboki exchange rate today in Lagos often referred to as the parallel market rate. In this unofficial market, the US dollar takes precedence over the Nigerian naira, and foreign currencies are traded without official government sanction. For many Nigerians, this unregulated market has evolved into a crucial benchmark, providing a more accurate representation of the economic conditions compared to the official exchange rates.

Dollar to Naira black market exchange rate today October 20, 2023:

According to reports from bureau de change (BDC) operators, the Black Market Dollar to Naira exchange rate today stands at: 

° Buying: ₦1140  for $1 

° Selling: ₦1150 for $1 

To put today’s Dollar to Naira black market exchange rate into perspective, traders in this unofficial market are purchasing one US dollar from customers for ₦1,040 and selling it for ₦1,050. This demonstrates a significant difference when compared to the official dollar to naira rate. 

Dollar To Naira Yesterday Black Market Exchange Rate.

 The dollar to naira yesterday exchange rate at the black market closed at ₦1100/$1. Please noted that the dollar to naira yesterday closing is determined by the average  dollar to naira rate traded at various platforms.

Official CBN Exchange Rates 

 The Central Bank of Nigeria (CBN) sets the official exchange rates, with the following rates in effect: 

° Buying: ₦764.64 for $1

° Selling: ₦768.02  for $1 

Under these official rates, the CBN acquires one US dollar for ₦764.64 and sells it for ₦768.02  through authorized dealers.

Dollar to Naira Bank rate today. 

GTBank Dollar to Naira exchange rate black market Furthermore, data indicates that the average Dollar to Naira Exchange Rate Today at bank is as follows: ° Buying: ₦775.04 for $1 

° Selling: ₦780.04  for $1 

This means that banks were selling one US dollar for 780.04 naira and buying it from customers for 775.04 naira.

Influential Factors in the Naira’s Depreciation Against the US Dollar 

Several factors contribute to the devaluation of the naira against the US dollar in Nigeria. These factors include: 

1. Fluctuating Oil Prices: Nigeria’s economy is highly dependent on oil exports. When global oil prices decline, it reduces the country’s revenue, foreign exchange reserves, and puts pressure on the naira’s value. Foreign Exchange Reserves: The depletion of Nigeria’s foreign exchange reserves, often due to servicing external debt, can weaken the naira’s exchange rate. 

2. Exchange Rate Policies: The Central Bank of Nigeria (CBN) plays a vital role in setting exchange rate policies. Interventions to maintain an official exchange rate, especially when foreign reserves are low, can lead to devaluation.

 3. Inflation: High inflation erodes the purchasing power of the naira, making it less attractive to foreign investors and causing devaluation. 

4. Economic Uncertainty: Political instability, economic uncertainties, and security concerns can deter foreign investments, reducing foreign exchange inflow and leading to naira devaluation. 

5. Global Economic Factors: Events like the COVID-20 pandemic can have a significant impact. The pandemic disrupted global trade, led to a drop in oil prices, and subsequently affected Nigeria’s foreign exchange earnings. 

6. Market Speculation: Speculative activities in the foreign exchange market can influence the naira’s value. Speculators betting on future devaluation can contribute to the naira’s decline. 

7. Balance of Trade: An unfavorable balance of trade, where imports significantly exceed exports, can strain the country’s foreign exchange reserves and put pressure on the naira’s value. 

8. Government Policies: Policies related to trade, foreign exchange, and economic management can affect the naira’s value. Decisions like fuel subsidy removal can impact inflation and, by extension, the exchange rate. 

These factors collectively contribute to the devaluation of the naira against the US dollar, shaping Nigeria’s exchange rate dynamics. The exchange rate of the dollar to naira holds great significance as an economic indicator of Nigeria’s performance and stability. This rate fluctuates across different markets, including the CBN, banks, and the black market. While CBN and bank rates are officially regulated, the black market rate is determined by market forces.