Discover the current Dollar to Naira exchange rate in the black market, also known as the parallel market (Aboki fx).
Check the black market Dollar to Naira exchange rate for January 30th below, and explore these rates for swapping your dollars to Naira.
What’s the dollar to Naira rate today in the black market?
As of Tuesday, January 30, 2024, players in the Lagos Parallel Market (Black Market) buy a dollar for N1460 and sell it at N1470, according to Bureau De Change (BDC) sources.
Kindly note that the Central Bank of Nigeria (CBN) does not recognize the parallel market (black market). Individuals engaging in Forex are directed to approach their respective banks.
Dollar to Naira Black Market Rate Today
Dollar to Naira (USD to NGN)
Black Market Exchange Rate Today
- Buying Rate: N1460
- Selling Rate: N1470
Dollar to Naira CBN Rate Today
Dollar to Naira (USD to NGN)
CBN Rate Today
- Buying Rate: 888
- Selling Rate: 889
Date | Market | Buying Rate | Selling Rate |
---|---|---|---|
January 30, 2024 | Black Market (Aboki) | N1460 | N1470 |
January 30, 2024 | CBN Rate | 888 | 889 |
Please be aware that the rates you buy or sell forex may differ from those captured in this article due to varying market prices.
Naira Hits Record Low Of N1348.63/$ In Official Market, Parallel Rate At N1450/$
The Nigerian naira has experienced an unprecedented decline, reaching N1348.63 against the US dollar in the Nigerian Autonomous Foreign Exchange Market.
This record fall, reported on Monday, represents a significant 51.21% drop from the closing rate of N891.90/$ last Friday in the official market, according to data from the FMDQ Securities Exchange.
This rate marks the worst official exchange rate the country has seen since the Central Bank of Nigeria (CBN) floated the national currency in June 2023.
Note: The naira’s consistent decline crossed the N1000/$ mark on the official window for the first time on December 8, 2023, subsequently falling to new lows in the following weeks and months.
Nigeria’s Policies and the Black Market Dollar to Naira Rates
The current Nigerian government, led by President Bola Tinubu since May 29, 2023, has introduced significant economic policies that bear consequences on the naira’s value, particularly in the black market.
Key Policy Changes:
- Fuel Subsidy Removal: The administration took a bold step in discontinuing long-standing fuel subsidies that disproportionately favored the wealthy, leading to a substantial drain on government resources. This move resulted in more than doubling the price of Premium Motor Spirit (PMS), triggering a notable surge in the prices of essential commodities².
- Exchange Rate Unification: The government merged all forex windows into NAFEM (previously NAFEX), eliminating the hard peg on Naira trading within the official market. This shift allows foreign currencies to be bought and sold at rates determined by the market, rather than being dictated by the central bank¹².
- Market Liberalisation: The administration opted for market forces to determine the naira’s value, abandoning various controls and restrictions on forex access and use. This strategic move aimed to establish a transparent, liquid, and efficient forex market, fostering an environment attractive to foreign investors and enhancing dollar supply.
Effects on Naira’s Value:
The implemented policies have yielded mixed effects on the naira’s value. On the positive side, they have narrowed the gap between official and unofficial rates, reducing market distortion and arbitrage.
Additionally, these policies have saved the government considerable funds that were previously channeled to private pockets through fuel subsidies and multiple exchange rates. The confidence and credibility of the forex market have seen an upswing, crucial for capital formation and economic growth.
However, on the flip side, these policies have exposed the naira to the volatility of market forces, influenced by factors such as oil prices, foreign reserves, demand and supply dynamics, speculation, and panic. The naira has faced downward pressure, particularly in the black market, where high demand for dollars clashes with limited supply. The removal of fuel subsidies has also contributed to inflationary effects, diminishing the naira’s purchasing power and escalating living costs.
In essence, the Tinubu administration’s policies haven’t necessarily devalued the naira against the dollar. Instead, they’ve made the currency more responsive to market dynamics. The naira’s value remains subject to the interplay of various economic forces, both domestic and external, beyond any administration’s control. Tinubu’s policies aim to create a conducive environment for long-term naira recovery and stability, albeit accompanied by short-term challenges and adjustments.
Source The Informant247 Economy news