Black Market Dollar to Naira Exchange Rate – September 5, 2024 Latest Update

Dollar to Naira Exchange Rate: September 5, 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: ₦1,630
• Selling Rate: ₦1,635

Dollar To Naira CBN Official Rates:

• Buying Rate: ₦1,620
• Selling Rate: ₦1,621

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 5, 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.

Nigeria’s Purchasing Managers’ Index Records First Expansion in 13 Months.

 

Nigeria’s economic landscape is showing signs of recovery as the composite Purchasing Managers’ Index (PMI) for August 2024 reached 50.2 index points, up from 49.7 in July. This marks the first expansion in economic activity after 13 months of contraction, according to the Central Bank of Nigeria (CBN).

 

The PMI survey report, released on Wednesday by the CBN, highlighted that the expansion was mainly driven by the services and agricultural sectors. The services sector experienced its third consecutive month of growth, while the agricultural sector saw expansion for the first time in over a year. Although the industrial sector continued to contract, the pace of decline slowed compared to the previous month.

 

Among the 36 sub-sectors analyzed across industry, services, and agriculture, 17 reported growth. The primary metal subsector showed the highest growth, while 19 sub-sectors experienced declines, with forestry showing the sharpest drop.

 

Key indicators such as output, new orders, and stock of raw materials recorded positive movements, with index points of 50.8, 50.5, and 51.3, respectively. However, employment figures declined to 48.7 points, and suppliers’ delivery times remained unchanged at 50.0 points.

 

The August PMI data suggests a potential turnaround in Nigeria’s economic trajectory, raising optimism for continued recovery after a prolonged period of contraction.

 

The PMI survey for August 2024 was conducted from August 12-16 and involved purchasing and supply executives from industry, services, and agriculture. The PMI is calculated based on responses regarding changes in business activities, with an index above 50.0 indicating expansion, below 50.0 indicating contraction, and 50.0 indicating no change.

 

The composite output index stood at 50.8 points in August, signaling growth in production for the second consecutive month. Of the 36 sub-sectors reviewed, 19 reported increased production, with primary metals showing the highest expansion. In contrast, 14 sub-sectors experienced declines, with non-metallic mineral products recording the most significant drop. The fabricated metal products sector, including electricity, gas, steam, and air conditioning supply, remained stable.

 

The composite new orders index for August was 50.5 points, indicating an increase in incoming business/orders. Of the 36 sub-sectors, 15 reported growth in new orders, with primary metals showing the highest increase. Plastics, rubber products, and transportation equipment sectors remained stable, while 19 sub-sectors reported lower levels of new orders.

 

The industrial sector PMI was 49.2 points, marking the seventh consecutive month of contraction but showing improvement from earlier months. While mining, quarrying, electricity, gas, water supply, and construction subsectors reported expansions, the manufacturing subsector declined in August.

 

Among the 17 subsectors surveyed, nine recorded contractions, and eight reported expansions. The transportation equipment subsector experienced the most significant contraction, while primary metals saw the highest expansion.

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