The exchange rate of the United States dollar (USD) to Nigerian Naira (NGN) has been a topic of interest for many people, especially those who engage in international trade or remittances. The official exchange rate of the USD to NGN is set by the Central Bank of Nigeria (CBN), but there is also a parallel market where the exchange rate is determined by supply and demand forces. This article will provide an overview of the current exchange rate of the USD to NGN in the black market, as well as factors that influence the exchange rate.
Current Exchange Rate of USD to NGN in Black Market
As of June 2, 2023, the exchange rate of the USD to NGN in the black market is around ₦755 [3]. This means that for every one USD, you can get around ₦755 in the black market. However, it is important to note that the exchange rate in the black market is not fixed and can vary depending on various factors.
Factors Influencing Exchange Rate in Black Market
One of the main factors that influence the exchange rate of the USD to NGN in the black market is supply and demand. If there is a high demand for USD and a low supply, the exchange rate will increase. On the other hand, if there is a low demand for USD and a high supply, the exchange rate will decrease. This is why the exchange rate in the black market can be volatile and unpredictable.
Another factor that influences the exchange rate in the black market is government policies. For example, if the CBN introduces policies that restrict access to foreign exchange, it can lead to a shortage of USD in the market, which can cause the exchange rate to increase. Similarly, if the CBN introduces policies that increase access to foreign exchange, it can lead to an increase in the supply of USD in the market, which can cause the exchange rate to decrease.
Comparison with Official Exchange Rate
The official exchange rate of the USD to NGN is set by the CBN and is currently around ₦461.26 [1]. This is significantly lower than which is around ₦755 [3]. The differenhow much is dollar in black market todayce between the official exchange rate and the black market exchange rate is known as the exchange rate premium. The exchange rate premium exists because of the high demand for USD in Nigeria, which is driven by factors such as importation, remittances, and foreign investments.
Impact on Nigerian Economy
Thehow much is dollar in black market today exchange rate of the USD to NGN has a significant impact on the Nigerian economy. A high exchange rate can make imports more expensive, which can lead to inflation and a decrease in purchasing power. On the other hand, a low exchange rate can make exports more competitive, which can lead to an increase in economic growth.
The exchange rate also has an impact on foreign investments in Nigeria. A high exchange rate can make it more expensive for foreign investors to invest in Nigeria, while a low exchange rate can make it more attractive for foreign investors.
Conclusion
In conclusion, the exchange rate of the USD to NGN in the black market is currently around ₦755 [3]. The exchange rate is influenced by factors such as supply and demand and government policies. The exchange rate premium between the official and black market exchange rates exists because of the high demand for USD in Nigeria. The exchange rate has a significant impact on the Nigerian economy and foreign investments in Nigeria.