The Canadian dollar to naira black market exchange rate has been quite high of recent, and that is because the naira has been on a freefall against a basket of currencies not just on the black market, but also the official channels. Presently, one can exchange the Canadian dollar for between N540 to N555. The average price of the Canadian Dollar as against the Nigerian Naira has been N542.

Aside from being a very important currency on the international market, the CAD is also very important because it represents a sizable portion of Nigeria’s foreign currency inflows. Canada is a choice location for Nigerians seeking to work abroad, and so the many Nigerians working over there regularly send money home to family and loved ones, and also to engage in investments.

The Canadian Dollar is therefore a major currency both at official channels, and on the black market, where most of the transactions are done.

Canadian Dollar To Nigerian Naira Black Market Exchange Rate

Currency Date High Low
Canadian Dollar $CAD 01-September 2022 N540 N538
Canadian Dollar $CAD 30-August 2022 N542 N540
Canadian Dollar $CAD 29-August 2022 N542 N540
Canadian Dollar $CAD 28-August 2022 N555 N550
Canadian Dollar $CAD 27-August 2022 N554 N553
Canadian Dollar $CAD 26-August 2022 N552 N550
Canadian Dollar $CAD 25-August 2022 N550 N549
Canadian Dollar $CAD 24-August 2022 N550 N547
Canadian Dollar $CAD 23-August 2022 N550 N546

 

Analysis Of The Exchange Rates Above

From the data above, it is clear that the Canadian dollar has been rising against the naira on the black market, despite falling against many other currencies. The Canadian Dollar currently sells for N540, on the black market, but has recently sold for rates as high as N560.

It appears that these rates are occasioned by a high amount of demand for the currency. This demand is probably caused by the generally high demand for foreign currency; as many Nigerians are taking to saving their wealth in foreign currencies. Canada is also a very important travel destination for Nigerians because the economic situation over there is quite favorable.

Nigerians are obliged to exchange large amounts of naira into Canadian Dollars as part of the preparation process to travel to Canada, in order to start a new life. Many times, they have to source for this money from the black market.

What Is The Black Market?     

The black market is the currency exchange that operates outside the banking system. In Nigeria it is also called the Parallel Market, in a bid to disguise its illegality. There is no central control in the black market; prices can vary widely from one location to another.

The black market has been described as the freest market because it operates strictly on the basis of demand and supply. When the demand is high, a dealer can mark up his rates, and continue doing so as long as he has demand. Buyers will continue to buy as long as they think the price is fair.

What To Know About Exchanging Canadian Dollars To Naira On The Black Market

On the black market, you can exchange the Canadian dollar for naira at varying prices on any given day. Please recall that there is no central control of the market, and dealers can only make enquires about the going rates of certain currencies at other locations through phone calls to colleagues at other locations.

It has therefore been observed that there is a tendency for prices to be relatively low in the morning, and then to rise by several points to close the day at a high. In order to take advantage of this trend, many Nigerians have chosen to buy foreign currencies in the early mornings while prices may still be low, and to sell in the afternoons when the prices have gone up.

Where To Find Black Market Dealers

There are black market dealers in every major city in the country; however, the biggest centre of the black market in Nigeria is Lagos. This is because the highest volume of foreign currencies bought and sold in the country is done in Lagos. You can find black market currency dealers in Lagos Island, Okota, Festac, and Alaba.

Caution When Visiting The Parallel Market

As mentioned earlier, the Black market has no regulatory systems or authority. Sometimes, it is possible to buy foreign currencies at inflated prices.

There are also stories of people who have taken their foreign currencies to black market dealers, only to be told that the money was fake.

There are also stories of people who have been issued with fake dollars in exchange for their naira.

Keep in mind that most of these exchangers operate in street corners and markets, so it is possible to lose all the money to robbers and purse snatchers.

Therefore, it is important to be very careful when visiting a black market dealer; it is advisable to check this page for updated prices, and then to go with a trusted person.

Can One Exchange Currencies Online?

It is impossible to vouch for anybody who claims to be able to sell or buy currency at black market rates on the internet. Be aware that due to the anonymous nature of the internet, it is possible for people to come on the comment sections of blogs and forums posing as currency dealers with the intention of defrauding unsuspecting people.

It is therefore not advisable to contact anybody from the internet who claims to be able to buy or sell currencies at black market rates. Please note that the currencies are held physically, and will need to be exchanged physically.

The publishers of this website will not be liable for any losses made by dealing with anyone found through this website.

Why Are The Exchange Rates So High?

After analyzing the going rates of the major currencies such as the Canadian Dollar on the black market, any patriotic Nigerian would question why the exchange rates are so high. We analyze some of the major causes of the high exchange rate of the Canadian Dollar on the Nigerian market.

High Demand For Canadian Dollars

Most black market operators will tell you that the Canadian dollar is scarce. The scarcity is relative because while there are many people asking for the Canadian dollar, there are not so many selling. This is why the Canadian dollar is rising against the Nigerian naira, while falling against other currencies such as the US Dollar, and the Euro.

Looting Of Public Funds

Another factor which has been identified as a cause for the rapid decline of the naira against several currencies is the looting of public funds by government officials. After looting public money in naira, they make huge orders for foreign currencies so as to stash their stolen money in foreign bank accounts.

Public officials are usually afraid to change the money on the official channels because these can be traced, and then they would be caught. They therefore use the black market, while by the laws of demand and supply, would then drive up the prices even further.

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Closing

The Canadian dollar to naira black market exchange rate is high, despite the fact that the Canadian dollar itself has been on the steady decline against other major currencies such as the USD and EUR.

This raises questions about why there is such a demand for the currency in Nigeria because it does not exactly serve as a store of value; at least not as well as other currencies and investment channels which have been appreciating against most other currencies in the world.