Here is Naira to Dollar exchange rate for the black market and CBN. The Naira to dollar parallel market exchange rate has been relatively stable over the past few weeks as reported on CBN site. This dollar black market rate keeps hovering around 360 i.e. $1- N363, do you think it will go any higher or come crashing down anytime soon?
Dollar to Naira Exchange Rate Today – Black Market
The table below is compiled to show the exchange rate of one U.S. Dollar to Nigerian naira including the prevailing parallel market rate. The Nigerian naira has fallen to 360 in exchange for the USD at the Aboki fx black market rate today (mallam exchange rate), which is a value higher than what is obtainable for the interbank market launched recently.
ABOKI FOREX TODAY’S RATE
BUY $1 = 360 Nigerian Naira (₦) NGN
SELL $1 = 362 Nigerian Naira (₦) NGN
DOLLAR EXCHANGE RATE IN NIGERIA TODAY – BUREAU DE CHANGE & CBN
CBN Official Exchange Rate of Dollar to Naira Today
Buy = N305.90
Western Union Dollar to Naira Exchange Rate Today
MoneyGram Dollar to Naira Exchange Rate Today Black Market
Dollar to Naira Bank Rate for GTBank and Other Banks Today
Rate = N368.00
How Much is Dollar to Naira Exchange Rate Today Black Market – Daily Update
For the benefit of importers and business people like poultry farmers who are interested in knowing the current dollar rate in order to send money from Nigeria to another country, please kindly drop the aboki rates at which you were charged during your recent transactions (both black market and official bank rates) using the comment box below.
Source: Aboki.com exchange rate.
For those abroad who are planning to send funds to Nigeria, the Naira to Dollar exchange rate is a major issue. Whatever type of currency you send into the country, you are left at the mercy of the prevailing rates that keeps floating. This means the rate at which you exchange your funds may rise or fall anytime without prior notice. Over the past months, the variations have been really wide and this can be a major concern for people interested in transferring funds.
Here are some factors affecting the Nigerian currency exchange rate at the moment.
The current political instability including security challenges rocking the nation is a major factor. From Boko-Haram to Niger Delta militants to Fulani herdsmen, some parts of the nations are continually under threats. All these discourage foreign investors and drive away those who have investments.
Net Import and Export
Nigeria’s major export is crude oil, and this constitutes over 75 percent of revenue generation. Fluctuation in the world price of crude oil affects the economy in significant scale. Also, Nigeria is a consumer economy that imports virtually everything citizens use. We spend more Naira than we earn in dollars.
The interest on Dollar to Naira exchange rate is intense, especially in Nigeria. This is not unconnected with the fact that Nigeria is a predominantly import-dependent country, with imported goods ranging from electronics, mobile devices, clothing, jewelry, vehicles, consumables as well as processed food products among several others. These have put a strain on Nigeria’s foreign reserves, and have also led to a continuous scramble for the dollar to fuel these imports. It is in the light of these that this article focuses on the dollar to naira exchange rate value.
Although there has recently been some stability in the value of the Naira against major currencies, especially the dollar, this has not always been so, as the exchange value of the naira against the dollar witnessed a dip from 2015 to its present exchange rate which as seen the Naira shore up in value to N360 to N362 per dollar. This is cheering news considering the fact that the value of the Naira against the dollar had plunged as low as N500/$1 at some point.
The Dollar to Naira Exchange Rate Today
Although currency fluctuations happen on a daily basis, with some of these currencies witnessing major fluctuations, the value of the dollar the naira can witness several fluctuations within a week. This also may either be major or minor fluctuations. However, the dollar to naira exchange rate today stands at N360/$ at the Interbank/official rate and N363/$ at the parallel market or black market rate as popularly called in Nigeria. Further information on the performance of the Naira against major currency pairs can be found on http://www.cbn.gov.ng/rates/exchratebycurrency.asp
Exchange Rate Convergence
For a long time, the exchange rate of the Naira against the Dollar had witnessed a huge and widening gap. This was also fuelled by the official devaluation of the Naira against major currencies by the CBN (Central Bank of Nigeria) in mid-2016. This act is known as floating the naira, and according to the CBN, it was targeted at reducing the pressure on the Naira which it called the automatic adjustment mechanism. What is sought to achieve was to expose the Naira to market forces which would determine its value?
Before now, and even after the implementation of the devaluation of the Naira, the Naira had been witnessing a free fall. This was a strategy employed by the regulatory body, the CBN to shore up the value of the Naira. However, this witnessed a delay, as the value of the Naira continued to plunge further down with the naira witnessing a huge drop against the dollar to as low as N500/$. The sector worst hit by this trend was the parallel market (black market) which witnessed a huge divergence in the currency value from the official rate of N360/$.
The continuous intervention of the CBN to achieve a convergence in currency rates eventually paid off, as the Central Bank Flooded the currency market with billions of dollars. It attributed the drop in the value of the Naira to the Dollar to the activities of speculators within the currency market who it accused of hoarding Dollar supplies, thus creating an artificial scarcity within the currency market which led to a huge decline of the value of the Naira against the dollar in the foreign exchange market.
The convergence in currency value between the parallel market rate and the interbank rate was just a matter of time. Initially, it was speculated among currency experts that this intervention could not be sustained. However, this was sustained and drove the value of the Naira against the Dollar high. At some point, the parallel market rate Vs the interbank market rate converged. This has since been maintained with a little margin allowed for black marketers or operators of Bureau de Changes to make their profit.
Why is the Dollar to Naira Exchange Rate Important to Nigerians?
The Dollar to Naira exchange rate in Nigeria is a sensitive issue mainly because Nigeria is a consumer based economy. There is little manufacturing going on in the country, and as a result, this cannot meet up with local demand. Also, there is a harmful culture among Nigerians for preference of foreign goods and products over locally produced ones. There is a negative notion of anything foreign being more superior to locally produced goods.
However, Nigerians cannot be blamed entirely, as the technology applied to the finishing of products is still crude, and as such, there is a stark difference in quality between some foreign goods compared to those manufactured in the country. This has left much to be desired as people prefer using or buying durable and beautifully finished products over those which look crude.
The Way Forward
Some of the numerous problems leading to the low value of the Naira against major global currencies, especially the Dollar have been highlighted, however, to increase the value of the Naira against the dollar, the adoption of every action which would make this possible should be encouraged. Some of these include the patronage of made-in-Nigeria products out of patriotism. Although this may be difficult, yet, if sustained, within a few years, the impact of this on the manufacturing industry will be enormous.
The second approach is the creation of an enabling framework where manufacturers will be able to do business with minimal hindrance or bottlenecks experienced in the registration of businesses, and enabling policies to aid in smooth functioning of businesses, and industries. Policy formulation and implementation is the duty of the government. These if properly implemented will lead to a much-reduced demand for foreign reserves to purchase foreign goods.
Through value addition, the Nigerian economy will witness a great resurgence through the export of finished and processed goods. Crude oil refining is a sector which would greatly benefit from this policy, thereby lifting the dependence on the foreign reserves. Exported refined petroleum products will fetch the country a better and much improved foreign exchange rate.
The Dollar to Naira exchange rate will continue to be a hot topic in the Nigerian manufacturing, and consumer sectors of the economy as it is one of the primary indices used in gauging the economy of the country.
There are other factors that influence the dollar to Naira exchange rate. These include government policy, our obsession with imported products, public debt, inflation and current account deficits.
How Much Is Dollar To Naira Exchange Rate Today Black Market? Share your transactions rates with us. More Naira to Dollar exchange rate for online transactions to be updated soon!