As of October 5, 2024, the exchange rate for the US dollar (USD) to Nigerian Naira (NGN) in the parallel market, commonly referred to as the black market, has reached N1,670 for 1 USD.
This exchange rate is typically obtained from the most recent data provided by Bureau De Change (BDC) operators, who play a key role in the informal foreign exchange market.
The rates in the black market often differ significantly from the official rates set by the Central Bank of Nigeria (CBN) due to the varying dynamics of supply and demand within the informal market.
On the same day, October 5, 2024, the black market buying rate for the US dollar stood at N1,660, while the selling rate was recorded at N1,670.
These rates are subject to frequent changes throughout the day, influenced by a range of factors including prevailing economic conditions, market speculation, and government policies.
The fluctuations in the dollar-to-naira exchange rate within the black market are indicative of ongoing economic challenges and a persistent shortage of foreign exchange in Nigeria.
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In contrast to the black market rates, the Central Bank of Nigeria (CBN) maintains an official exchange rate, which as ,of today, is set at N1,657 per USD.
The significant disparity between the official CBN rate and the rates in the parallel market underscores the intense pressure being exerted on the naira.
This gap between the two rates also reflects broader challenges in Nigeriaโs foreign exchange market, where demand often outstrips supply, leading to volatility.
The black market, though unofficial, serves as a barometer for the real-world value of the naira, especially in times of economic uncertainty.
The ongoing fluctuations in exchange rates are a symptom of deeper economic issues, including limited access to foreign currency, which has been exacerbated by various domestic and international factors.
The situation highlights the challenges faced by the Central Bank of Nigeria in stabilizing the naira amidst a turbulent forex market, where the official and parallel market rates continue to diverge.
