Dollar to Naira Black Market Exchange Rate 2023 Update

Filed in Articles, Exchange Rate by on March 13, 2023

Advertisements

If you have been looking for an update on the dollar to naira black market exchange rate, then you are in the right place. Read through this article to find out the current rate of the dollar to naira in the black market today.

Dollar to Naira Black Market Exchange Rate

Here is today’s Dollar to Naira exchange rate:

Currency dealers in Nigeria’s Abuja Zone 4 market reported that a dollar was bought at 753 and sold at 747 today, compared to 754 yesterday.

Furthermore, the second most traded currency, the Euro/Naira, traded in the black market at 795 buy and 775 sell.

Advertisements

Interestingly, at the same time, the Pound To Naira Exchange Rate is 930 buy, while the black market rate is 910 sell.

1 Dollar(USD) to Naira(N) Exchange Rate Today In Black Market

Buying => 1 Dollar to Naira = N753

Selling => 1 Dollar to Naira =N747

As previously stated, the black market dollar-to-naira exchange rate is not pegged to the CBN rate and thus fluctuates on a daily basis.

In this regard, this page is regularly updated with the most recent exchange rate for Dollar to Naira in the Black Market; we recommend that you bookmark it.

Key Factors that Affect Foreign Exchange Rates

Here are some of the key factors that affect foreign exchange rates in the country

Inflation Rates

Currency exchange rates fluctuate due to changes in market inflation. A country’s currency will appreciate if its inflation rate is lower than that of another.

When inflation is low, prices for goods and services rise at a slower rate.

A country with consistently lower inflation has a rising currency value, whereas a country with higher inflation has a depreciating currency, which is usually accompanied by higher interest rates.

Interest Rates

Interest rate changes have an impact on currency value and the dollar exchange rate. Forex rates, interest rates, and inflation rates are all linked.

Interest rate increases cause a country’s currency to appreciate because higher interest rates provide higher rates to lenders, attracting more foreign capital and causing exchange rates to rise.

Country’s Current Account/Balance of Payments

The current account of a country reflects the balance of trade and earnings from foreign investment. It is made up of a variety of transactions such as exports, imports, debt, and so on.

A current account deficit caused by spending more of its currency on importing goods than it earns from exports causes depreciation.

The exchange rate of its domestic currency fluctuates due to the balance of payments.

Government Debt

Government Debt

Government debt is the public debt or national debt that is owed by the central government

A government-debt-ridden country is less likely to attract foreign capital, resulting in inflation.

If the market predicts that a country’s government debt will rise, foreign investors will sell their bonds on the open market.

As a result, the value of the currency’s exchange rate will fall.

Terms of Trade

The terms of trade, which are related to current accounts and the balance of payments, are the ratio of export prices to import prices.

If a country’s export prices rise faster than its import prices, its trade terms improve. This leads to increased revenue, which leads to increased demand for the country’s currency and an increase in its value.

The exchange rate rises as a result of this.

Read Also:

Political Stability & Performance

Currency strength can be affected by a country’s political situation and economic performance.

A country with fewer political problems is more appealing to foreign investors.

An increase in foreign capital leads to an increase in the value of the country’s domestic currency. A country with sound financial and trade policies does not allow for currency value uncertainty.

However, in a country prone to political confusion, exchange rates may fall.

Recession

When a country experiences a recession, interest rates are likely to fall, reducing the country’s ability to attract foreign capital.

As a result, its currency depreciates in comparison to other countries currencies, lowering the exchange rate.

Speculation

If the value of a country’s currency is expected to rise, investors will buy more of that currency in order to profit in the near future.

As a result of the increased demand, the currency’s value will rise. With an increase in currency value comes an increase in the exchange rate.

As noted above, there are so many factors that can lead to the fluctuation of price in the rise of the naira. So if you are one who trades daily, it’s advisable to keep yourself updated to know the current price in the market.

CSN Team.

Advertisements

Comments (1)

Trackback URL | Comments RSS Feed

  1. Doove says:

    yet prises of good are high, when shall we comd back to a prise decrease to be in conformity with mimum wage?

Hey Hi

Don't miss this opportunity

Enter Your Details