Dollar to Naira Black Market Today, August 24, 2023: Insights and Analysis

The Dollar to Naira exchange rate today, August 18, 2023, at the parallel market popularly known as the black market is N900. This means that currency traders can buy US$1 for N900 from most black market operators, News About Nigeria reports.

This Nigeria’s fastest-growing digital media has curated Dollar to Naira exchange rates across various foreign exchange segments, the black market, the Central Bank of Nigeria (CBN) and the Bureau de Change for your convenience.

How Much is $1 to Naira in Black Market Today?

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Please note that this dollar to naira exchange rate at the black market is subject to change depending on economic policies, political happenings and fluctuations in global oil prices, Nigeria’s main source of foreign revenue. However, in the above table is how much $1 is to a Naira today. It means you can buy and sell $1 USD at N870 and N860, respectively.

Central Bank of Nigeria (CBN) Official Naira Exchange Rates

The Black Market Exchange Rate Explained

The black market exchange rate refers to the unofficial, often illegal, market where foreign currencies are traded outside the regulated channels. In the case of the Dollar to Naira exchange rate, this rate is determined by supply and demand dynamics, as well as various economic and geopolitical factors. Unlike the official exchange rate set by the Central Bank of Nigeria, the black market rate can offer a more accurate reflection of the true value of a currency in the open market.

Factors Influencing Today’s Dollar to Naira Black Market Rate

1. Economic Indicators: Economic indicators such as GDP growth, inflation rates, and unemployment play a significant role in determining exchange rates. A strong economy typically leads to a stronger currency, while a weak economy can lead to currency depreciation.
2. Political Stability: Political stability and investor confidence can impact currency values. A country with a stable political environment often attracts foreign investment, leading to an appreciation of its currency.
3. Global Events: Geopolitical events, such as trade agreements, conflicts, and international relations, can create volatility in currency markets. Events like these can lead to sudden shifts in exchange rates.
4. Supply and Demand: The basic principle of supply and demand holds true for currency markets. If the demand for a currency like the Dollar outweighs its supply, its value may increase against the Naira.
5. Monetary Policy: The actions and decisions of a country’s central bank can greatly influence its currency’s value. Interest rate changes and monetary policy adjustments can impact investor sentiment and thus affect the exchange rate.