Emmanuel OchayiWhat is the Dollar to Naira Exchange rate at the black market also known as the parallel market (Aboki fx)?
The exchange rate for the US dollar (USD) to Nigerian Naira (NGN) in the black market, also known as the parallel market or Aboki fx, is ₦1,531 for 1 USD As of July 5th, 2024.
This rate is sourced from the latest data provided by Bureau De Change (BDC) operators.
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What is the Dollar to Naira Exchange Rate at the Black Market (Aboki fx)?
The exchange rate between the dollar (USD) and the Nigerian naira (NGN) has been a topic of concern for many Nigerians.
The black market, also known as the parallel market or Aboki fx, often offers a different rate compared to the official rates provided by the Central Bank of Nigeria (CBN).
John, a local currency trader, stated, “The demand for dollars is very high, and this has pushed up the rates in the black market. People need dollars for various reasons including travel, education, and business, and they often turn to the parallel market when they can’t get enough from the banks.”
The Central Bank of Nigeria (CBN) provides an official rate for the dollar to naira exchange, which is currently lower than the black market rate.
Dollar to Naira Black Market Rate Today
- Buying rate: ₦1,520.00 /$1
- Selling rate: ₦1,531.00/$1
- POUND (GBP): Buy – N1900
- POUND (GBP): Sell – N1920
- EURO (EUR): Buy – N1600
- EURO (EUR): Sell – N1620
READ ALSO: Black Market Dollar (USD) To Naira (NGN) Exchange Rate Today 4th July 2024
Dollar to Naira CBN Rate Today
- Buying rate: ₦1,510.00 /$1
- Selling rate: ₦1,511.00/$1
- POUND (GBP): Buy – N1916.07
- POUND (GBP): Sell – N1917.34
- EURO (EUR): Buy – N1623.27
- EURO (EUR): Sell – N1624.34
- YUAN (CNY): Buy – N207.78
- YUAN (CNY): Sell – N207.92
CRYPTOCURRENCY
At the time of posting
BITCOIN
- 1BTC: NGN86.6M
- 1NGN: 0.000000001BTC
ETHEREUM
- 1ETH: NGN4.7M
- 1NGN: 0.00000021ETH
Variations In Forex Rates
The variation between the black market and the CBN rates is due to several factors. Dr. Ngozi Okonjo-Iweala, an economist, explained, “The black market rates are influenced by the forces of demand and supply.
When there is a high demand for dollars and a limited supply, the rates go up. Conversely, when there is less demand, the rates can stabilize or even drop.”
50 Dollars to Naira Today Black Market
For those looking to convert smaller amounts, 50 dollars is exchanged at N76,000 for buying and N76,550 for selling in the black market. This is a considerable amount compared to the official rate which would be N38,000.
100 Dollars to Naira Today Black Market
Similarly, 100 dollars would be exchanged at N152,000 for buying and N153,100 for selling in the black market. This rate reflects the high demand and the challenges faced by the economy in stabilizing the currency exchange rates.
500 Dollars to Naira Today Black Market
For larger transactions, 500 dollars is exchanged at N760,000 for buying and N765,500 for selling. This amount highlights the premium that individuals and businesses have to pay in the black market compared to the official channels.
1000 Dollars to Naira Today Black Market
Finally, for those needing even larger amounts, 1000 dollars would be exchanged at N1,520,000 for buying and N1,531,000 for selling.
This rate continues to underscore the ongoing issues within the forex market in Nigeria.
Others
Other amounts will follow the same trend, with higher amounts leading to higher overall costs when converted into the black market.
This trend is problematic for many Nigerians who rely on dollars for various transactions.
Impact on Businesses and Individuals
The high exchange rates in the black market significantly impact businesses and individuals. Many businesses that rely on imported goods or services have to adjust their pricing to account for the higher costs of acquiring foreign currency. This can lead to increased prices for consumers.
A local business owner, Mr. Adewale, shared his experience: “We import raw materials from abroad, and the high cost of dollars in the black market has made it very challenging. We’ve had to increase our prices, and that affects our customers.”
Government Efforts to Stabilize the Forex Market
The Nigerian government has been trying to stabilize the forex market and bring the black market rates closer to the official rates. These efforts include measures to increase the supply of dollars in the official market and policies to reduce the demand for dollars in the black market.
However, these measures have had limited success so far. The gap between the black market and official rates remains significant, and many Nigerians continue to rely on the parallel market for their forex needs.
The dollar to naira exchange rate in the black market as of 5th July 2024 stands at N1,520 for buying and N1,531 for selling. This rate is much higher than the official CBN rate and reflects the ongoing challenges in Nigeria’s forex market.
The impact of these rates is felt across various sectors of the economy, affecting both businesses and individuals. Efforts by the government to stabilize the market are ongoing, but the disparity between the black market and official rates remains a pressing issue.
Emmanuel Ochayi is a journalist. He is a graduate of the University of Lagos, School of first choice and the nations pride. Emmanuel is keen on exploring writing angles in different areas, including Business, climate change, politics, Education, and others.
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