Curious about the Dollar to Naira exchange rate in the black market, also known as the parallel market or Aboki fx?
The Informant247 bring to you the latest rates for January 22, 2024, giving you insights into the dynamic forex landscape.
Dollar to Naira Exchange Rate Today Black Market (Aboki Dollar Rate):
In the bustling Lagos Parallel Market (Black Market), players are currently buying a dollar for N1355 and selling it at N1360 on this Monday, according to credible sources at Bureau De Change (BDC).
It’s important to note that the Central Bank of Nigeria (CBN) officially doesn’t recognize the parallel market (black market). Individuals looking to engage in Forex transactions are directed to approach their respective banks for regulated transactions.
Dollar to Naira Black Market Rate Today:
- Buying Rate: N1355
- Selling Rate: N1360
Dollar to Naira CBN Rate Today:
- Buying Rate: 890
- Selling Rate: 891
Keep in mind that the rates for buying or selling forex may vary from what is captured in this article, as prices are subject to fluctuations.
Impact of Tinubu Administration’s Economic Policies on Dollar to Naira Black Market Rates
Since assuming office on May 29, 2023, President Bola Tinubu’s government in Nigeria has implemented impactful economic policies that reverberated through the value of the naira, especially in the black market. Let’s delve into these policies and their effects on the Dollar to Naira exchange rates.
- Fuel Subsidy Removal:
The administration took a bold step by ending long-standing fuel subsidies that disproportionately benefitted the wealthy, causing significant strain on the government’s finances. This move resulted in more than doubling the price of Premium Motor Spirit (PMS), triggering a notable surge in prices of essential commodities¹². - Exchange Rate Unification:
The Tinubu-led government executed a significant move by consolidating all forex windows into NAFEM (previously NAFEX), removing the hard peg on Naira trading within the official market. This shift means that foreign currencies are now traded at rates determined by the market, fostering a more dynamic forex landscape¹². - Market Liberalisation:
Embracing market forces, the administration opted for a laissez-faire approach, allowing market dynamics to dictate the naira’s value. This move aimed to create a transparent, liquid, and efficient forex market, attracting foreign investors and bolstering dollar supply¹³.
These policies yielded both positive and challenging outcomes for the naira. On one hand, they narrowed the gap between official and unofficial rates, eliminating market distortions and arbitrage opportunities. The government also saved substantial funds by curbing fuel subsidy leakage, enhancing forex market confidence and credibility¹².
However, these policies exposed the naira to market volatility influenced by factors like oil prices, foreign reserves, demand and supply dynamics, speculation, and panic. The heightened demand for dollars in the black market, coupled with a limited supply, exerted downward pressure on the naira. In addition, the inflationary effects of fuel subsidy removal impacted the naira’s purchasing power and increased living costs².
In essence, the Tinubu administration’s policies aimed to create a resilient environment for the naira’s recovery and stabilization in the long run. While these measures responded to market dynamics, they also presented short-term challenges. The naira’s value remains subject to intricate economic forces, both domestic and external, beyond any administration’s immediate control.
Source The Informant247 Economy news