Dollar to Naira Black Market: Check October 2023 Price Update
The dollar to naira black market rates is a topic of great economic concern. Let us delve into what black market is all about, the current black market rate and the factors that affects the rate of exchange between the United States Dollar to Nigerian Naira.
What is Black Market?
In this context, Black market is said to be an unconventional market that exists outside the official banking system.
It usually involves individuals trading foreign currencies outside the government regulated financial institutions.
The Dollars to Naira Black Market Rate
As of Today, the black market rate also known as the Aboki/Bureau De Change (BDC) is 1008 naira as the selling rate and 1002 naira as the buying rate.
A lot of Nigerians prefer to exchange their foreign currencies using the black market because the exchange rate is usually very high and mouthwatering compared to what the financial institution offers.
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Factors that Fuels the Black Market Exchange Rate
Supply and Demand: This factor affect the black market rate greatly. When there is a Scarcity of Dollars, this can increase the exchange rate.
Inflation: This plays a vital role in the value of naira. When inflation occurs, people tend to hold and transact with a more stable foreign currency.
Uncertainty of an Economy: When there is an uncertainty in the economy, this can push people to prefer doing businesses or transaction in dollars or to prefer holding US dollars, this further increases the demand in the black market and its rate.
The “Dollar to Naira black market” shows an important aspect of Nigeria’s financial map. It brings to light the factors that comes to play in the black market rates. To navigate smoothly, one has to understand the dynamics of the black market.
CSN Team.
