AUSTRALIAN DOLLAR TO NAIRA EXCHANGE RATE: BLACK MARKET AND OFFICIAL RATE
The Australian dollar to naira black market rate is subject to volume of trade. The Australian Dollar is considered a major currency because it receives a high volume of trading on the markets every day. In Nigeria, however, it may be considered a minor currency because there is not much demand for it, due to the fact that there is not much between the two countries in terms of trade.
Nevertheless, the Australian dollar has seen a rise in its exchange rate against the Nigerian naira because the Nigerian naira has depreciated against most currencies. In the Black market one can get the Australian Dollar for N465, as against the official rate which is N287.
The Australian Dollar is mainly traded as a security in Nigeria, there is not much demand for use in international trade.
Australian Dollar To Naira Black Market Rate
|Australian Dollar $AUD||02- September 2022||₦ 463||₦ 460|
|$AUD||01- September 2022||₦ 462||₦ 461|
|$AUD||31- August 2022||₦ 460||₦ 458|
|$AUD||30- August 2022||₦ 455||₦ 442|
|$AUD||29- August 2022||₦ 455||₦ 442|
|$AUD||28- August 2022||₦ 434||₦ 431|
|$AUD||27- August 2022||₦ 463||₦ 463|
|$AUD||26- August 2022||₦ 463||₦ 461|
|$AUD||25- August 2022||₦ 493||₦ 490|
Analysis OF The Figures Above
From the figures above we can see that the Australian dollar is presently trading for ₦ 463, and has been trading for between ₦ 493 and ₦ 461. However, these prices do not demonstrate the full picture of the volatility experienced in recent times; the Australian dollar sold for as high as ₦ 520 on the 12th of August 2022, when it sold for ₦ 298 on the official market.
One may wonder why there are two exchange rates. The official exchange rate is self explanatory; so it may be necessary to explain what is meant by the term “Black Market.”
Brief Notes About The Black Market
The Black Market, also called the Parallel Market, is the currency exchange that operates informally. This is outside government control, outside the banking system, and outside the law. The black market is a function of demand and supply; rates can vary from location to location, depending on the volume of demand they get.
There is no central control of the black market; there are hundreds of dealers working independently, offering rates that are higher or lower, as long as they manage to make some profit.
These Black Market currency dealers are spread all over the major cities of the country; but in terms of volume, no city compares to Lagos, where most of the business is done, and where the larger number of the dealers are located. Some of the top locations within Lagos where the black market dealers may be found include; Alaba International, Lagos Island, Okota, and Festac.
Timing The Market
It is impossible to accurately predict the market; especially with a currency like the Australian Dollar on the black market where it may not receive a lot of volatility. However, many traders have observed that prices usually start lower, and end higher.
Therefore, it has been claimed that one can make more money buying in the mornings, and selling in the evenings. Of course this only applies if the exchange rate is trending higher.
Are There Online Alternatives To The Black Market?
Due to the anonymous nature of the internet, there is a high probability of falling victim to the many dangers that abound. For example; people advertising black market foreign currencies could be fraudsters and kidnappers.
They could issue unsuspecting victims with fake foreign currencies, and could also pose as currency dealers while obtaining private information about their victims.
Therefore, it is best to completely avoid the internet when it comes to black market currency deals.
What To Know About The Australian Dollar To Naira Black Market Rate
It is important to know the forces behind the Australian dollar to naira black market exchange rate. As mentioned before, the black market exchange rate is determined by demand and supply. When the demand is higher than available supply prices generally go up; and vice versa.
Demand may come from Nigerians who are about to embark on business trips to Australia, and who may need to have the Australian dollar so as to facilitate the business ventures. Demand is quite low because there are very few Nigerians doing business with Australia.
It appears that there is more supply of the Australian Dollar, than there is available demand. This is because there are many Nigerians working in Australia; and they send money home to their families and friends.
What Is The Outlook On The Australian Dollar To Naira?
Having seen the fundamentals driving the exchange rate; it appears that as long as supply continues to outweigh demand, the Australian dollar will go down against the Nigerian naira in the long term. This may even be helped by the general weakness of the Australian dollar against several other currencies.
The major factor that could work against this calculation is the extreme pressure on the naira, which may be caused by socio economic reasons such as insecurity in the country. This could cause the naira to weaken further against the Australian dollar, as well as other currencies. This could cause panic buying, which could further raise the prices of the Australian dollar on the black market, as Nigerians look to shore up their wealth.
Therefore, if Nigeria is able to find solutions to its security challenges, then its currency should appreciate, not just against the Australian dollar, but against many other currencies.
The Australian dollar to naira black market rate is determined by demand and supply. At the moment, there is a high demand for the Australian dollar, which is why the rates are quite high.
Please note that this article does not encourage patronage of black market currency dealers; but simply acknowledges its existence. The analysis on this article are not intended as financial advice; the publishers of this website do not accept liability for any losses incurred by use or misuse of this information.