The pounds to naira exchange rate on the black market has been alarmingly high of recent, this is the sad economic reality. On the parallel market, one can exchange one British Pound for between N658 to N810. Prices can differ widely during the day, depending on the particular time and place where the exchange is made.
Next to the US Dollar, the Great British Pound GBP is the most traded currency in Nigeria. This is because the many Nigerians working or doing business in the British Isles send money home to family and friends, as well as to embark on capital projects back home.
Most of these recipients of the pounds often change the money on the black market, where they receive a higher value for the exchange made.
Pounds to Naira Exchange Rate In Black Market
|29- August 2022
From the available data; the GBP has traded for between N658 to N872 on the parallel market in recent days, with an average price of 765. However, the nearer figure is N855, and the trend is presently going higher. The reasons for the steady rise in the price of the Great British Pound as against the Nigerian Naira are basically centered around the general weakness of the latter currency.
Brief Notes About The Black Market
The Black Market, also known as the Parallel Market is the foreign currency exchange which operates outside the banking system, and therefore outside the control of the government.
The Black Market has no central control, and operates in several locations throughout the country; with the largest center being in Lagos. Price updates come through communication; and can lag for hours or days before reaching other locations because there is no central control.
In Lagos, some of the main areas where one can change pounds to Naira on the black market include Lagos Island, Okota, Festac, and Alaba International.
When To Visit the Black Market
A major characteristic of the black market is that prices start out relatively low in the early hours of the day, but have the tendency to move several points higher during the afternoons and evenings.
Therefore, many patrons of the black market have hinted that when they intend to buy Great British Pounds from the black market, they usually go in the mornings, whereas, when they are selling they usually go in the evenings, when the prices are highest.
Exercise Caution When Visiting Black Market Dealers
There are several potential dangers associated with visiting black market currency dealers; one of them being that it is possible to get robbed of ones’ cash. This is because the black market is usually located in places like markets, busy streets, and street corners. Therefore one must exercise all the necessary caution when visiting the black market.
Another potential danger is that one can be given fake pounds at the black market exchanger. Even though there are very rare stories of people being issued with fake foreign currencies, it could happen because there are no supervisory mechanisms in place to ensure that the operators deal fairly.
This is leads to a very important question: Should one as a good citizen go to the black market?
Is It A Good Idea To Visit The Black Market?
The black market makes it virtually impossible for the government to arrest the decline of the nations’ currency. This is because when the government declares one value for the naira in exchange of the GBP, and the black market offers a higher exchange rate, people will naturally turn to the black market in order to get a higher value in naira for the pounds they have.
Sometimes, the black market is the only way to get pounds, because the government’s strategy is to deny access to foreign currency, and this is of great concern to people in the export business, because they absolutely need this money to transact their business.
Therefore, many people have no choice but to use the black market, despite the fact that it conveys a hint of an unpatriotic stance against the official design of government.
Are There Online Places To Pounds Exchange Pounds Against The Naira?
The Great British Pounds you have in your possession are probably in the physical form. Therefore, the exchange should be done in the same manner. Therefore, any website or person claiming to be able to change naira for pounds online should be viewed with skepticism.
It is very unwise to contact anybody, especially on blog comment sections, offering to buy your pounds, and give you naira in exchange. You have no way of being sure that your foreign currency will not be taken from you at gun point.
The same caution should be taken when dealing with people who want to give you pounds in exchange for naira. There is no way of verifying that you will be given genuine pound notes in exchange for your naira.
Therefore, the surest bet is to ask around the city where you live; and therefore find out trusted black market currency dealers in your city. It is also advised that one goes with a friend when going to exchange pounds to naira.
General Outlook Of The Pound To Naira Exchange Rate On The Black Market
The general outlook of the pound to naira exchange rate is rapidly escalating. On every chart, graph and indicator, it appears that the naira is on a free fall, declining steadily.
The Nigerian Naira has generally depreciated against several currencies because of the many problems facing the country; chief among them being the deteriorating security situation in the country. Security is the fundamental issue with the Nigerian society at the moment, and it has caused the following problems.
Agriculture Has Suffered
Farmers have largely abandoned their farms in many parts of the north, as well as in other parts of the country, like the South East. Aside from the petroleum industry, agriculture is another core industry in the country, not just because it is important to feed the nation, but because agriculture brings in a good chunk of foreign exchange (including GBP), as cash crops are sold to other countries.
Trade Has Suffered
As expected, industry and trade too have suffered because goods and services cannot be safely transported from one place to another. With goods not moving freely, the result is a scarcity. Scarcity raises prices, and causes inflation, which further worsens the value of the naira.
The pounds to naira exchange rate on the black market has been very high in recent months; this is because the naira has been under immense selling pressure recently. Some of the identified causes of this decline include the security challenges facing the country, and the inflation that arises from the scarcity of goods and services.
It is important to exercise caution when visiting black market dealers; this will help one to ensure the safety of his person, and of the money in his possession.