The going rate for exchanging dollars into naira today is somewhere between 700 and 712, and that’s true in both the black market and aboki fx. Consider the USD/NGN exchange rate from today, September 23, 2022. You can exchange your dollars for naira at these prices, or you can use the most recent rate from the black market or the parallel market.
Due to the substantially higher exchange rate offered by the black market compared to the bank, many Nigerians choose to convert foreign currency, especially dollars to Naira, on the black market.
This page contains information about the current exchange rate between the US dollar and the Nigerian naira, including the official rate set by the Central Bank of Nigeria and the unofficial rate set by traders on the black market.
How much is one dollar in Nigerian naira as of the 23rd of September, 2022?
Remember that the Central Bank of Nigeria (CBN) does not approve of the parallel market (black market) and has suggested that those interested in Foreign Exchange get in touch with their own banks first.
The CBN rate and the parallel exchange rate (black market rate) never coincide. The dollar/naira exchange rate has major repercussions for the Nigerian economy.
Inflation, brought on by the falling value of the Naira, typically has an effect on the population. The Central Bank of Nigeria has said the country’s economy requires a dramatic reversal, and the people of Nigeria have been urged to take steps toward this end, such as boosting exports.
In Nigeria, the official exchange rate for dollars is often greater than what can be found on the black market (CBN). CBN Exchange rate refers to the rate at which Naira can be bought or sold for dollars on the CBN dollar-to-naira website, cbn.gov.ng.
In order to make purchases on overseas websites using your Naira MasterCard or Naira Debit Card from a Nigerian bank, you will need to convert your currency using the bank rate, which is now 1 U.S. dollar = 560. These prices are typically lower than what one might get on the underground or gray market.
Dollar to Naira Black Market Rate Today, 23rd September 2022
|Dollar to Naira (USD to NGN)||Black Market Exchange Rate Today|
Causes of Fluctuations in International Currency Prices
Here are several reasons why the dollar is losing ground against the naira.
Rates of inflation are well-known to have an obvious effect on the rates of exchange found in the underground economy. If the Nigerian economy is stable and inflation is reduced, the naira will strengthen; if it continues to decline, however, it may be a sign that basic necessities, such as food, are getting more expensive on a day-to-day basis.
In addition, interest rates are a key metric to monitor. Raising the interest rate at which banks lend money would be detrimental to the economy, resulting in a contraction of the economy and a decline in the value of the naira.
The level of national debt may affect investors’ willingness to put money into the economy. High inflows lead to a more favorable naira exchange rate.
Naira/dollar fluctuations are often caused by market speculation. The value of the naira falls even further as people hoard cash in anticipation of a future profit.
However, despite Nigeria’s current trade deficit, the value of the naira will rise to the dollar if trade conditions are favorable. Everything is imported from Asia, particularly China and India.