Curious about the latest Dollar to Naira exchange rate at the black market, also known as the parallel market (Aboki fx)? Check out the rates for 20th January below, and discover where you can swap your dollars for Naira at the most favorable rates.
Black Market Exchange Rate Today:
At the Lagos Parallel Market (Black Market), individuals can buy a dollar for N1345 and sell at N1350 as of Saturday, 20th January 2024, based on information from Bureau De Change (BDC) sources.
CBN Rate Today:
For those following the Central Bank of Nigeria (CBN) rates, the buying rate stands at 890, while the selling rate is 891.
| Date | Market | Buying Rate | Selling Rate |
|---|---|---|---|
| 21st January 2024 | Black Market (Lagos) | N1345 | N1350 |
| 21st January 2024 | CBN Rate | 890 | 891 |
Please be aware that the rates you encounter for buying or selling forex may differ from the figures presented in this article due to market fluctuations.
Why the Naira Depreciates in Value to Dollar:
Understanding the factors behind the Naira’s depreciation against the Dollar over the past two decades:
- Heavy Reliance on Oil Exports: Nigeria’s dependency on oil revenues exposes the Naira to fluctuations in global oil prices. When oil prices decline, the Naira weakens, impacting the country’s ability to meet import needs and foreign debts.
- Weak Diversification: Nigeria’s economy has not diversified beyond oil, making it susceptible to oil price shocks and hindering competitiveness in other sectors. Limited non-oil revenues and foreign investments contribute to the Naira’s vulnerability.
- Exchange Rate Policies: Frequent changes in exchange rate policies by the Central Bank of Nigeria (CBN), from fixed to floating rates, create market uncertainty, reducing investor confidence. CBN interventions to defend the Naira deplete foreign reserves and increase borrowing costs.
- High Demand for Dollar: Nigeria experiences high demand for the Dollar for various purposes, leading to a shortage in the official market. This scarcity drives up the Dollar’s price and motivates individuals to turn to the black market, where rates are often higher.
- Black Market Dynamics: The informal and unregulated black market, influenced by speculation, corruption, smuggling, and illegal activities, can distort exchange rates, further undermining the Naira.
The devaluation of the Naira against the Dollar and the prevalence of the black market impact the cost of living, business operations, macroeconomic stability, inflation, debt, and poverty in Nigeria. Stay informed to navigate the evolving financial landscape.
