Dollar (USD) to Naira Black Market Exchange Rate Today – 6th September 2023

 changes. In the case of the Dollar to Naira exchange rate, the fluctuations could be quite significant, affecting a range of economic activities in Nigeria. This article provides a detailed look at the Dollar to Naira black market exchange rate as of 6th September 2023.

“The value of a nation’s currency is a direct reflection of what the world market thinks about its current and future health. Its strength is not just an economic indicator but also a reflection of its political stability.”

The Dollar to Naira rate varies daily due to a multitude of economic factors. It further fluctuates depending on the exchange medium – whether it’s the official CBN rate, the BDC (Bureau De Change), or the ever-volatile black market (also known as the parallel market or Aboki Forex). This report focuses specifically on the black market rate. 

• Official CBN rate: This is the Central Bank of Nigeria’s official exchange rate. It is often less than the black market rate but is only accessible to a limited number of individuals and businesses.
• BDC rate: The Bureau De Change is a privately-owned currency exchange platform. Its rates are typically higher than the CBN rate but lower than the black market rate.
• Black Market (Aboki Forex) rate: This refers to the rate at which the Dollar to Naira is exchanged on the streets. It is typically the highest among the three rates.

Understanding these rates and their differences is key to making informed financial decisions, and this article aims to provide accurate and up-to-date information on the current black market exchange rate of the Dollar to Naira.

What is the current exchange rate of Dollar to Naira in the black market?

to Naira in the black market is not fixed and can vary depending on several factors such as demand and supply, economic policies, and political stability. As of 5th September 2023, the exchange rate of Dollar to Naira in the black market is approximately 1 USD to 920 NGN.

Aboki Forex is a popular platform for exchanging foreign currencies in Nigeria, especially in the black market. It is a trusted and reliable source for exchanging currencies, and many people rely on it for their daily transactions. Aboki Forex provides real-time exchange rates for various currencies, including the Dollar to Naira exchange rate.

The black market exchange rate for Dollar to Naira is usually higher than the official exchange rate set by the Central Bank of Nigeria (CBN). This is because the demand for foreign currencies is high, and the supply is limited. Many people prefer to use the black market to exchange currencies because it is faster and more convenient than going through the formal banking system.

It is important to note that the use of the black market for currency exchange is illegal in Nigeria. The CBN has warned against the use of the black market and has put measures in place to curb its activities. However, the black market continues to thrive due to the high demand for foreign currencies and the limited availability of forex in the formal banking system.

What factors influence the exchange rate of Dollar to Naira in the black market?

several factors. One of the major factors is the demand and supply of both currencies. When the demand for dollars is high and the supply is low, the value of the dollar increases relative to the Naira. On the other hand, when the supply of dollars is high and the demand is low, the value of the dollar decreases relative to the Naira.

Another factor that influences the exchange rate of Dollar to Naira in the black market is the economic stability of the country. When the economy is stable, investors are more likely to invest in the country, which increases the demand for the Naira and strengthens its value. Conversely, when the economy is unstable, investors are less likely to invest in the country, which decreases the demand for the Naira and weakens its value.

Political instability is also a factor that can influence the exchange rate of Dollar to Naira in the black market. When there is political uncertainty, investors become hesitant to invest in the country, which can lead to a decrease in the demand for the Naira and a weakening of its value. On the other hand, when there is political stability, investors are more likely to invest in the country, which can lead to an increase in the demand for the Naira and a strengthening of its value.

The level of inflation in the country is another factor that can influence the exchange rate of Dollar to Naira in the black market. When the inflation rate is high, the value of the Naira decreases relative to the dollar, as people lose confidence in the currency’s purchasing power. Conversely, when the inflation rate is low, the value of the Naira increases relative to the dollar, as people have more confidence in the currency’s purchasing power.

Finally, the actions of the Central Bank of Nigeria (CBN) can also influence the exchange rate of Dollar to Naira in the black market. For example, if the CBN decides to increase interest rates, this can attract foreign investors, which can lead to an increase in the demand for the Naira and a strengthening of its value. Conversely, if the CBN decides to decrease interest rates, this can lead to a decrease in the demand for the Naira and a weakening of its value.

What is the history of the Dollar to Naira exchange rate in the black market?

rate for the US dollar to the Nigerian naira has a long and complex history. The black market, also known as the parallel market, refers to the unofficial and illegal trading of currencies outside of official channels. This means that the exchange rate in the black market is not regulated by the government or financial institutions, and can fluctuate wildly based on supply and demand.

Since the 1980s, Nigeria has experienced periods of economic instability, including high inflation and currency devaluation. This has led to a thriving black market for currency exchange, as individuals and businesses seek to bypass official channels and obtain foreign currency at a more favorable rate.

In recent years, the black market exchange rate for the US dollar to the Nigerian naira has been particularly volatile. In 2016, the exchange rate reached an all-time high of over 500 naira to the dollar, due in part to falling oil prices and a shortage of foreign currency reserves. This caused significant economic hardship for many Nigerians, as the cost of imported goods and services skyrocketed.

The Nigerian government has taken steps to address the issue of the black market exchange rate, including implementing currency controls and cracking down on illegal currency traders. However, these measures have had limited success in stabilizing the exchange rate, and the black market continues to thrive in Nigeria.