Black Market Dollar to Naira Exchange Rate – September 4, 2024 Latest Update

Dollar to Naira Exchange Rate: September 4, 2024 – Black Market and CBN Rates. 

As Nigeria continues to navigate economic challenges, the dollar-to-naira exchange rate remains a focal point for those engaged in foreign trade, investments, and travel.

The black market, also known as the parallel market or Aboki FX, often reflects rates different from the official Central Bank of Nigeria (CBN) rates. Today, the exchange rates offer insight into the fluctuating value of the naira.

Current Exchange Rates Today.

Dollar to Naira Black Market Exchange Rate (Parallel Market):

• Buying Rate: ₦1,635
• Selling Rate: ₦1,640

Dollar To Naira CBN Official Rates:

• Buying Rate: ₦1,605
• Selling Rate: ₦1,608

Pounds and Euro to Naira Exchange Rates

Pounds to Naira (CBN Rates):

• Buying Rate: ₦2,120
• Selling Rate: ₦2,125

Euro to Naira (Black Market Rates):

• Buying Rate: ₦1,800
• Selling Rate: ₦1,805

Online Exchange Platforms: Geegpay and Grey

Geegpay Rates:

• EUR (€): Buying at ₦1,798.03, Selling at ₦1,800.55
• GBP (£): Buying at ₦2,120, Selling at ₦2,125
• USD ($): Buying at ₦1,600, Selling at ₦1,670

Grey Rates:

• EUR (€): Buying at ₦1,800.03, Selling at ₦1,802
• GBP (£): Buying at ₦1,902, Selling at ₦2,015
• USD ($): Buying at ₦1,600, Selling at ₦1,660

Understanding Dollar to Naira Black Market Exchange Rate.

What is the Black Market?
The black market is an unofficial exchange channel where currencies are traded without government regulation. Due to high demand and limited supply, this market often offers more competitive rates.

Why Do People Use the Black Market?

• Favorable Rates: Higher than official rates.
• Accessibility: Easier to obtain foreign currency without stringent regulatory requirements.

Factors Influencing Black Market Rates

Economic Policies:
Government decisions on interest rates, inflation control, and forex regulations by the CBN directly affect the naira’s value. These policies can stabilize or destabilize the exchange rates.

Supply and Demand:
The availability of foreign currency versus its demand significantly influences exchange rates. A shortage of foreign currency or high demand leads to naira depreciation.

Political Stability:
Geopolitical events and internal political stability affect investor confidence. Political unrest or uncertainty can cause the naira to depreciate, while stability strengthens it.

Global Economic Conditions:
Global market conditions, such as oil prices, international economic trends, and global inflation rates, influence the naira’s value. For instance, a significant drop in oil prices negatively impacts Nigeria’s economy.

Comparing Dollar to Naira Official and Black Market Rates

Why the Disparity?

• Supply and Demand: Limited availability in the official market drives people to the black market.
• Regulatory Restrictions: CBN imposes limits on forex availability, leading to higher black market rates.
• Economic Instability: Fluctuations in oil prices and inflation prompt people to seek more favorable black market rates.

Impact on the Economy:
High black market rates can:

• Inflation: Increase costs for imported goods.
• Investment: Deter foreign investment due to economic instability.
• Trade: Benefit exporters while imposing higher costs on importers.

Using the Parallel Market Safely

Tips for Transactions:

• Verify Rates: Check reliable sources like Aboki FX for the latest rates.
• Reputable Dealers: Engage with trusted Bureau De Change operators to avoid scams.

FAQs on Dollar to Naira Exchange Rate

How much is a dollar to naira today in the black market?
The buying rate is ₦1,630, and the selling rate is ₦1,640 as of September 4, 2024.

Why does the black market offer higher rates than the CBN?
The black market rates are driven by supply and demand dynamics, regulatory restrictions, and economic instability.

Is it legal to trade forex in the black market?
While the CBN discourages it, many engage in the black market due to the unavailability of sufficient forex through official channels.

What are the risks of trading in the black market?
Among these risks are fluctuating rates, possible fraud, and the illegality of such transactions.

Can the CBN influence black market rates?
The CBN can only influence these rates through monetary policy, forex interventions, and regulatory measures; it has no direct control over the black market.

How often do black market rates change?
Rates can change daily or even multiple times per day, depending on market conditions and economic news.

Conclusion on Dollar to Naira Black Market Rate Today

The black market dollar-to-naira exchange rate is shaped by a complex interplay of economic factors, regulatory frameworks, and market dynamics. For many Nigerians, this isn’t just a statistic but a reality that highlights the profound challenges and opportunities within the Nigerian economic landscape. The rates, along with their underlying factors, play a crucial role in making financial decisions.

$500m domestic dollar bond result expected Friday

The Federal Government will, on or before Friday, announce the result of the $500 million domestic dollar bond recently offered to the Nigerian public.

 

A source close to the deal disclosed this to BusinessDay under anonymity, saying the government will put up an official statement on this.

 

On August 19, 2024, the Federal Government announced the offering of a $500 million domestic US dollar bond with a maturity of five years and a fixed coupon of 9.75 percent per annum.

What this means is that the investors are lending money in dollars to the Federal Government for five years with a promise to receive 9.75 percent in interest every year.

 

The offer closed on August 30, 2024, and the result is expected on Friday. Most of the analysts polled by BusinessDay said they expected the offer to be oversubscribed.

 

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