On the 20th of February 2024, the parallel market, commonly known as the black market, discloses its current exchange rates for the US dollar against the Nigerian naira. This informal marketplace operates independently of the Central Bank of Nigeria’s (CBN) regulated rates....CONTINUE READING
The current black market rates are as follows:
– Purchase rate: ₦1,690.00 per US dollar
– Selling rate: ₦1,700.00 per US dollar
For individuals engaging in transactions, this means that obtaining 1 US dollar requires ₦1,690.00, while selling 1 US dollar yields ₦1,700.00. It’s important to note that these rates may exhibit slight variations depending on the location and dealer.
Comparing the black market rates to the official exchange rate, a significant difference is evident. As of today, the CBN maintains the official exchange rate at ₦1,492.67 per US dollar. This official rate serves as the benchmark for CBN’s foreign exchange operations and influences the valuations of other foreign currencies such as the euro, pound sterling, and Chinese yuan.
The disparity between the black market rate and the official rate is referred to as the parallel market premium. This premium signifies the extent of deviation between the official and unofficial markets and reflects the confidence levels in the Nigerian naira and the effectiveness of CBN’s policies.
The fluctuation in the black market exchange rates is influenced by various factors, including supply-demand dynamics, inflation rates, political stability, and economic policies. Individuals and businesses often resort to the black market due to constraints or regulations that impede access to the official market.
In conclusion, the black market plays a crucial role in currency exchange, operating outside official regulatory frameworks. As the rates continue to fluctuate, stakeholders must navigate these dynamics while staying aware of the broader economic landscape.
