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 N1,536 for 1 USD As of July 7th, 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 also known as the parallel market (Aboki fx)?
The exchange rate between the dollar (USD) and the naira (NGN) in the black market, also known as the parallel market or Aboki fx, is a critical point of discussion. Traders and individuals relying on the black market for forex needs are keenly watching the fluctuations.
The exchange rate in the black market often differs significantly from the official Central Bank of Nigeria (CBN) rate, providing a more accurate reflection of the market demand and supply.
This rate is determined by the dynamics of demand and supply in the informal sector where individuals and businesses seek to exchange their dollars for naira and vice versa.
One of the currency traders at Lagos Island, known for his insights into the parallel market trends, shared, “Today’s rate is quite stable compared to the fluctuations we have seen earlier this month. We are buying dollars at N1,520 and selling at N1,536.” This statement highlights the stability observed in the market today, though it remains volatile overall.
READ ALSO: Black Market Dollar (USD) To Naira (NGN) Exchange Rate Today, 6th July 2024
Dollar to Naira Black Market Rate Today
- Buying rate: N1,520.00 /$1
- Selling rate: N1,536.00/$1
Dollar to Naira CBN Rate Today
- Buying rate: N1,515.00 /$1
- Selling rate: N1,520.00/$1
Variations In Forex Rates
There are notable variations between the black market rate and the official CBN rate. These differences are influenced by several factors including government policies, economic stability, and international forex trends.
An economist, Dr. Olusegun Adetayo, commented, “The gap between the CBN rate and the black market rate is widening due to the scarcity of dollars in the official market and increased demand in the parallel market.”
50 Dollars to Naira Today Black Market
For those needing to exchange 50 dollars today in the black market, you would get N76,000 if you are selling at the rate of N1,520 per dollar. If you are buying, it would cost you N76,800 at the selling rate of N1,536 per dollar.
100 Dollars to Naira Today Black Market
Exchanging 100 dollars today in the black market would give you N152,000 at the buying rate of N1,520 per dollar. On the other hand, purchasing 100 dollars would require N153,600 at the selling rate of N1,536 per dollar.
500 Dollars to Naira Today Black Market
If you have 500 dollars to sell in the black market today, you would receive N760,000 at the buying rate of N1,520 per dollar. Conversely, buying 500 dollars would cost N768,000 at the selling rate of N1,536 per dollar.
1000 Dollars to Naira Today Black Market
For 1000 dollars, the exchange would yield N1,520,000 at the black market buying rate of N1,520 per dollar. Purchasing 1000 dollars today would cost N1,536,000 at the selling rate of N1,536 per dollar.
Factors Influencing the Black Market Rate
Several factors influence the black market exchange rate. These include the availability of foreign currency, economic policies, and overall economic conditions.
One trader at Alaba Market explained, “The rate fluctuates based on how much dollar is available and the current demand. When demand is high, the rate goes up.” This practical insight from the ground level shows the real-time dynamics of the forex market.
Government Measures and Market Reactions
The government has been taking measures to control the forex market, aiming to narrow the gap between the official and black market rates.
However, these efforts often face challenges. Mr. Ibrahim Mustapha, a financial analyst, noted, “Despite government interventions, the black market remains resilient due to persistent demand and limited dollar supply in the official market.”
Impact on Businesses and Individuals
The fluctuating exchange rate impacts businesses and individuals alike. Importers, exporters, and travelers are directly affected by the dollar to naira exchange rate changes.
Mrs. Ebele Okafor, an importer, stated, “We rely on the black market for dollars because the banks cannot meet our forex needs. The high rates cut into our profit margins.”
The black market dollar (USD) to naira (NGN) exchange rate today, 7th July 2024, reflects the complex dynamics of Nigeria’s forex market.
With the buying rate at N1,520 and the selling rate at N1,536, the parallel market continues to play a vital role in meeting the forex demands of individuals and businesses.
The gap between the black market and official CBN rates underscores the challenges in Nigeria’s forex market, driven by demand, supply, and economic policies.
As the market evolves, stakeholders remain vigilant, navigating the fluctuations to manage their financial needs.
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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