Euro To Naira Exchange Rate In Black Market Today, September 2022

The euro to naira black market exchange rate is one of the key indicators which are of great interest to analysts and traders alike. This is because the Euro is one of the most important currencies globally; and it is the third most traded currency in Nigeria. The Euro is used as the means of exchange in many countries of Europe; due to its stable nature, it is also used to store value during times when there is economic uncertainty.

The Euro is very popular in Nigeria because there are many Nigerians working in the different countries of Europe, and they regularly send money home to their families and friends.

The Euro currently trades for around N680, and the trend is presently up, suggesting that it could rise in the future.

Euro To Naira Black Market Today

Analysis Of The Exchange Rates Above

The exchange rates arranged in a table above indicates that the Euro is currently trading at ₦ 680 on the Black Market, and has ranged between ₦ 685 to ₦ 645. This is very high compared to the official rate which is ₦ 423.

As the observant reader may have seen from the table above, the Euro has two rates quoted on the black market for each day. This may trigger a few questions such as what is the black market, and how does it work?

Brief Notes On The Black Market

The black market; also known as the Parallel Market is the illegal currency market which has become mainstream in Nigeria. It operates outside the banking system, and outside government control. The black market is perhaps the best place to see the forces of demand and supply in action; this is the basis upon which prices are set, and prices respond immediately to these forces.

The two prices quoted for the Euro indicate the highest price recorded on the date, and the lowest available price. As mentioned before, there is no central control for the prices; and as such the currency can be sold for a higher price at one location, but for a lower price at another location. However, it must be noted that the price differences are not usually high.

Demand and supply operates in this way: when a black market currency dealer has a lot of demand for a particular currency, he is tempted to increase the rates. If the demand continues, he may increase the prices further, and keep doing so until he notices a drop in demand.

He will also communicate the new prices to friends and colleagues in other locations, with the result that they too will increase their rates.

Outlook Of The Euro Against The Naira

The Euro is a very important currency; it is the de facto means of exchange across the eurozone; which includes powerful economies like Germany and France. The Euro is one of the most traded currencies in the world; and because of that it has a lot of demand.

Nigerians have a large demand for the Euro because many Nigerians wish to travel to work in Europe; they therefore need to have the currency as part of the requirements to travel to Europe.

This high demand therefore translates to a steady rise in exchange rates, meaning that we may continue to see a rise in prices.

Furthermore, the Nigerian naira has been on the decline against most of the world’s top currencies; including the Euro, both on the official exchange and on the black market. Major causes identified for this decline include the state of insecurity in the country, and looting of public funds.

These two factors affect the economy in different ways; agriculture, industry and transportation are badly affected. Furthermore, looting of public funds places unusually high demand for foreign currencies, as these thieves hurry to stash their loot in foreign banks.

Should One Exchange The Euro Against Naira On The Black Market?

Unfortunately, due to the currency restrictions placed by government on non strategic industries, there is a very high demand for the euro in Nigeria. This is because many people cannot buy the euro at the official exchanges, and so they are forced to go to the black market.

Nevertheless, one must be cautious because the black market is not controlled by any organization or group of persons. Therefore, it accommodates all manner of persons, some of whom pose as currency dealers to carry out their nefarious activities.

It is therefore necessary to exercise all caution when going to black market dealers; if possible, it is better not to go alone.

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Closing

The euro to naira black market exchange rate receives a lot of attention daily because it is a pointer to the direction of the economy overall. This is one of the most traded currencies in Nigeria; and it serves all the purposes such as for business, for travel, and as a security for Nigerians trying to protect their wealth from devaluation of the naira.

Disclaimer:

This article is for the purpose of information only; it does not advocate the use of black market exchangers. The information in this article is for record purposes only; it is not investment advice. The publishers of this website are not liable for any loses occasioned by your use or misuse of this information.