The Dollar to Naira exchange rate today in black market has hovered between N680 to N710 within the past few months. Prices on the black market can differ by wide margins depending on the exact place of the exchange, and on the exact time of the exchange.
Prices are influenced by demand and supply; and can change very quickly as there are no existing price control mechanisms on the parallel market. Since the dollar is the principal currency of international trade; this is the major currency of exchange in Nigeria. The dollar is the first mover, after which other international currencies also change in price.
The average price of 1 US Dollar on the black market in Nigeria is today is N690. However, find below a more detailed breakdown of the prices.
Dollar To Naira Exchange Rate Today Black Market
|Dollar to Naira (USD to NGN)
||Exchange Rate Today Black Market
The exchange rate of the US dollar to naira for today is N690. This is the most likely price at which one will be able to exchange his dollars at the parallel market. While it may be possible to get a lesser rate, such as the “low” price quoted in the table; you can be sure that if you are buying the dollar, you will pay the high price.
From the table above, one can see that the dollar has been generally rising against the naira. The black market exchange rate for the past 10 days has been between N650 and N715, with an average of N682 per dollar.
The price of one dollar reached a scandalous point on July 25, 2022, when it reached N716. This price generated so much uproar, and even led to the senators summoning the Governor of the Central Bank of Nigeria to explain his economic policies, and to explain where the policies are taking the country.
The bank rate, prescribed by the Central Bank of Nigeria is ₦ 422 to 1 USD. That is a 0.07% percent increase in the exchange rate of the USD as against the previous day’s rate. It also represents N268 difference.
Daily Price Fluctuations Of The Dollar In The Black Market
It has been observed that the US Dollar exchange rate to the Naira often starts out relatively “low” in the morning, but rises by several points by mid afternoon. This is because the parallel market reacts to demand, and the demand is usually at the highest during the afternoon.
Therefore, has been observed that many people prefer to change their dollars in the morning; before the demand comes in. Therefore, one may be able to get a fair deal if buying dollars. If selling dollars, however, many have stated that it was more profitable to wait till afternoon when prices are highest.
To Exchange $100
To exchange 100 dollars you will therefore get around N69,000. Exchanges can be done in multiples of 10; even though the basic unit of the calculation is 1USD, most black market exchangers will not deal with anything less than 10USD. Apparently, the same rule applies to banks, but it is a lot more pronounced in the black market.
Where Can I Find Black Market Exchangers For Dollars In Lagos?
There are several popular points where one can find black market exchangers in Lagos, Nigeria. You can find them at Lagos Island, Okota, Alaba, and Festac. The black market has been operating in Nigeria for several years, but there is still reason to exercise caution when going to exchange money.
This is because most of the exchangers operate in street corners, markets, and other such places. It is, therefore, necessary to exercise caution so that you do not fall victim to highwaymen, petty thieves, and purse snatchers who are on the rampage; looking for people to steal from.
Are There Online Sources For Currency Exchange?
It is not uncommon to find people seeking to exchange dollars through online means. There is presently no legitimate means of making such exchange. Therefore, it would be very wise to ignore messages from people on the internet, or on the comment sections of websites and blogs (such as this one) requesting you to sell or buy dollars from them.
There is no way of judging that they honest people of good character, and so it is just too dangerous to attempt to transact business with such people.
Why Do You Need Information About The Black Market
Information about the black market is necessary because Nigerian banks do not sell dollars. Therefore, the average Nigerian who has to do business internationally has to go through the pains of sourcing the dollars from other means; importers and exporters, have no choice but to go to the black market for the dollars they need to run their businesses.
The restriction on the sale of dollars placed on commercial banks is a policy of the government, as handed down to the CBN. This is to discourage the activities of currency speculators who buy and horde the dollars, hoping to profit from the scarcity and subsequent increase of price of the currency.
Implications Of Black Market Exchange Rate
Unfortunately, the presence of a black market has had serious and far reaching consequences. For one thing it has made the value of the Naira very hard to control.
As an import dependent economy, Nigeria has suffered from an uncontrolled exchange rate because prices of the daily need items have gone up; causing inflation, and making it difficult for the common man to live. The rapid increases in prices of commodities in the Nigerian markets can be attributed to the spiraling exchange rates.
Ordinary Nigerians who receive money from family and friends abroad prefer to receive the dollars at the bank, and then change it to Naira on the black market; where they can get more Naira for each dollar. That means that the black market receives more patronage than the official channels.
It can therefore be said that the black market is the true exchange rate of the Naira, and it better describes the true state of the Nigerian economy.
Recently, many Nigerian card holders have found themselves unable to make purchases on the internet at international merchant websites, as well as on company websites that offer services like webhosting. This is because of the pressure on the Naira, and also on the fact that international merchants do not believe that the official rate is the correct reflection of the Nigerian Naira.
Recent Controversies Surrounding The Exchange Rate
Recently, the governor of the Central Bank of Nigeria Godwin Emefiele was on TV and tabloids blaming popular financial information website Abokifx.com for the rapidly escalating exchange rate in the country. This has generated a lot of controversy because there is plenty of doubt as to the possibility of it being true.
Many have questioned the ability of an ordinary website to fix the exchange rate of the whole country. In theory; there are many websites all over the country who report the prevailing exchange rates on the parallel market. They simply report what they find; possibly getting their information from several sources throughout the parallel market.
Many young people have jumped to the defense of the website; stating that it is not possible to fix the exchange rate as a blogger, and that the CBN should do a better job of identifying the cause of the plunge in value of the Nigerian Naira, and find a solution to the problem.
Should There Be A Black Market?
It has been a matter of heated argument whether or not there should be a black market. When there is a need, that need will most likely be met- one way or another. It is therefore possible that there are parallel markets in even the most developed countries.
However, there are anti money laundry laws in developed countries that prevent the possession of large amounts of money in person. These laws make it virtually impossible for people to make large and sustainable transactions outside the banking system. If a person is found to have an unusually large amount of money on his person, he has contravened the law, and will face the penalty.
In the military era; there were laws prohibiting the possession of large amounts of foreign currency by persons in Nigeria. the exact reasons for the enactment of those laws are unclear; but judging by strength of the Naira in those years, it seems that they worked.
The Dollar to Naira exchange rate today in black market is subject to change at any point during the day. The exchange rate has been ranging between N650 and N715 over the last few days, with an average price of N680. Prices have been observed to be relatively low during the day, and at the highest in the late afternoon.