Pounds to Naira Black Market: October, 2023 Price Update
The pounds to naira black market rates is a subject of great economic concern. Let us dig into what black market is all about, the current pounds to black market rate and factors that affects the rate of exchange between Pounds to Nigerian Naira.
What is Black Market?
Black market in this context, is said to be an unconventional market that exists outside the official banking system.
Black Market involves individuals trading foreign currencies outside the government regulated financial institutions.
The Pounds to Naira Black Market Rate
As of Today, the black market rate also known as the Aboki/Bureau De Change (BDC) is 1260 naira as the selling rate and 1245 as the buying rate.
Lots of people prefer to exchange their foreign currencies using the black market because the exchange rate is usually very high compared to what the financial institution offers.
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Factors that Drives the Black Market Exchange Rate
1. Supply and Demand: These affect the black market rate greatly. When there is a Scarcity of Pounds, this increases the exchange rate.
2. Inflation: This plays a crucial role in the value of naira. When inflation occurs, people tend to hold and transact with a more stable foreign currency.
3. Economy Instability: When there is an instability in the economy, this can make people to prefer doing businesses or transaction in pounds or to prefer holding pounds, this further increases the demand in the black market and its rate.
CSN Team.
