What is the current exchange rate of dollar to naira in black market? Recently, issues that concern the exchange rate of the dollar to the naira at the parallel market have generously grazed daily headlines. This might be credited to the fact that the state of the Nigerian economy has made it obvious the role of exchange rates in people’s daily lives.
Now, it is a common event to have the roadside retailer say “dollar is now high”. There has been the persistent fluctuation in the naira to dollar black market rates for a while now, and lately, it’s been in the favor of the naira. No doubt this is a good light shone on the Nigerian economy, and a significant indicator for investments.
How much is dollar to naira in black market today? As of yesterday 27th March 2017, officially, the CBN buys a dollar at the rate of N305.8 and sells at N306.8. We are waiting to see how the dynamics would shift today, but it would be realistic to anticipate a positive forex.
Currently the nigeria black market dollar exchange rate today at midday and morning is given as follows:
28/03/2017 (midday) N370 N375
28/03/2017 (morning) N370 N380
Meanwhile, 1 dollar has been sold at an average of N390 as at last week, and ended at N385 in yesterday’s market.
Factors that influence the Fluctuations in Dollar to Naira Black Market Rate
• Undisciplined Leaders
Definitely there are strings that pull the values of the dollar up and down, and these strings can be well adjusted based on effective policies, as well as adequate measures against indiscipline. Why indiscipline? Because it is not a trivial effect that corruption has on the dollar to naira parallel market rate. It is no news that the current administration has devoted a lot of effort in tackling the menace of corruption, and has been on the tracks of substantial progress.
However, the teeth of corruption have already bitten so deep into our economic skin; although looted funds are being recovered, that does not change the established past in which good deal of money had already been smuggled out of our common purse into bank accounts overseas. The scandal of the panama papers is a good scenario that buttresses my point.
When they move these funds, they enrich those nations at the expense of the naira; they make the naira so common to those countries that the value is lost. This affects the exchange rates in a way that leaves a bad impression on our innocent economy.
• Preference of Foreign Products over Local Ones
“Let us buy Nigeria, and patronize Made in Nigeria” has gone beyond a campaign to favor our manufacturers but it’s now major means to fatten our own purses. Everyone knows that the Nigerian state import virtually everything useful to the society from electronics to automobiles and to toothpicks. The more we depend on foreign products, the less we help our currency as it would make it excessively available to foreigners, and their currency being scarce; and of course, the scarcer something gets, the more value we associate to it.
Probably the much hated move that the government took to increase import duties has finally begun to yield some good rewards. It must however be added that the CBN has been the most critical players in the forex financial field, in the sense that it has injected tangible funds or more precisely about $2.45 billion into the market.
The CBN has also made it clear its plans to ensure that Inter-banks do not sell above N360 in the nearest future. This is clearly going to pull a good chunk of people off the Black Market line.
Oil price also has its way of contributing to the caricature of our naira. With a drop in the price, we would be getting fewer dollars in our reserves and this means appreciation for the dollar against the naira. But with the recent improvements in the price of a barrel of crude oil, we expect the naira to appreciate and lead to decline of the black market price.
While importation is doing harm to our currency, we must admit that with the current trend of the dollar to the naira, importation has become a friendlier venture compared to the past month. Now, importation of more products can be made with lesser cash than a few weeks ago. It’s a time when entrepreneurs would wear a round countenance.
However, in my opinion import activities much be done with moderation for the sustenance of the positive growth that has started already.
On Travelers and Students Overseas
For now, they would certainly be having fun. They would now be getting their supplies from Nigeria and find them more significant compare to a few months ago when the value was much lesser.
And even when money comes from overseas, with the rate the CBN exchanges at, although it would not pay much compare to last two weeks, pays higher than the black market rate.
On Forex Market
It means a lot to forex traders themselves, in that they are expectant of the naira appreciation at this point. They expect appreciation because it has been the trend since the CBN started injecting more funds into the market since over a month now; so since the CBN has not stopped, why should the exchange rate of dollar to nairablack market take a radical shift?
What is exchange rate for Dollar to Naira at the black market today? Get daily updates on Naira to Dollar parallel market rates from this page. Find out!