This is the current Dollar to Naira exchange rate at the black market, also known as the parallel market (Aboki fx) today; Friday, January 26, 2024.
The exchange rates which differ from January 25 makes one wandering how much a dollar is worth in Naira today in the black market?
Check the latest Dollar to Naira exchange rate for January 26, 2024, at the Lagos Parallel Market (Black Market).
What is the Dollar to Naira Exchange Rate in the Black Market Today?
Reliable sources at Bureau De Change (BDC) reveal to The Informant247 that players buy a dollar for N1400 and sell at N1410 as of Thursday, January 25, 2024.
Please note that the Central Bank of Nigeria (CBN) doesn’t recognize the parallel market (black market). For Forex transactions, individuals are directed to approach their respective banks.
Dollar to Naira Black Market Rate Today
- Buying Rate: N1400
- Selling Rate: N1410
Dollar to Naira CBN rate
- Buying Rate: 886
- Selling Rate: 887
Keep in mind that the forex rates mentioned may vary, as prices are subject to change.
In other news, the World Bank forecasts a 3.7% growth for the Nigerian economy in 2025. According to their recent study, “Global Economic Prospect: Subdued Growth, Multiple Challenges,” Nigeria’s GDP is expected to increase by 3.3% in the current year, up from a projected 2.9% in 2023. The report highlights ongoing macro-fiscal reforms gradually contributing to this positive trajectory.
Market Insights: Tinubu’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