1 Dollar to Naira Black Market: October 2023 Price Update
1 Dollar to Naira Black Market rate is said to be the rate at which 1 dollar exchanges for naira in the black market. The black market rate slightly differs from the bank rate and the factors that influences this difference are varied.
What is Black Market?
In the financial world, Black market is the unofficial or unauthorized exchange of goods or services. This type of transaction takes place in other to evade some Government Policies and Regulations.
1 Dollar to Naira Black Market Rate
The selling rate of 1 dollar to naira in the black market is 1002 naira and the buying rate is 1008 naira.
1 Dollar to Naira Bank Rate
The rate of which 1 dollar is exchanged for naira in the bank is 763.65 naira.
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Factors that Affect Black Market Rate
1. High Inflation: The increased inflation in Nigeria destroys the purchasing power of naira, this results in USD being a store of value thereby increasing the black market rate.
2. Global Trends: For example, changes in the price of oil since Nigeria is a major exporter, can affect earnings in foreign exchange and influence the black market rates.
3. Economic Factors: The performance of Nigeria’s economy in relations to the United States impacts a lot on the market rate.
4. Political Uncertainty: This affects market speculations and impacts greatly on the black market rate.
5. Government Regulations: Regulations and Policies of Government like placing restrictions on the accessibility of official exchange rates can push individuals to make use of black market.
CSN Team.
