In the ever-changing landscape of foreign exchange markets, the black market continues to play a crucial role in Nigeria’s economy, providing an alternative avenue for individuals and businesses seeking foreign currencies. Today, on the 9th of February 2024, the black market exchange rate for the US dollar to the Nigerian naira is making headlines.
Black Market Rates:
- Buying rate: ₦1,475.00 per US dollar
- Selling rate: ₦1,482.00 per US dollar
For those engaging in black market transactions, obtaining 1 US dollar would require parting with ₦1,482.00, while selling 1 US dollar would fetch ₦1,475.00. It’s important to note that these rates may experience slight variations based on the location and the dealer involved.
Comparison with the Official Rate:
Contrasting the black market rates, the official exchange rate set by the Central Bank of Nigeria (CBN) stands at ₦886.89 per US dollar as of today. This official rate serves as the benchmark for the CBN’s transactions and interventions in the foreign exchange market, influencing the rates of other major foreign currencies like the euro, pound sterling, and Chinese yuan.
Parallel Market Premium:
The significant gap between the black market rate and the official rate is termed the parallel market premium. This premium signifies the extent of disparity between the official and unofficial markets, reflecting the confidence levels in the naira and the effectiveness of the CBN’s policies.
RELATED: Black Market Dollar to Naira Exchange Rate Today: 8th February 2024
The black market’s buying and selling rates, being ₦1,475.00 and ₦1,482.00 respectively, showcase a notable premium over the official rate. This discrepancy is influenced by factors such as supply and demand dynamics, inflation, political instability, and economic policies that contribute to the constant fluctuations in the parallel market exchange rates.
Navigating Economic Realities:
As individuals and businesses navigate the complexities of the foreign exchange landscape, it becomes imperative to stay informed about these exchange rates. The black market, despite its unofficial nature, remains a vital player, providing a lifeline for those facing restrictions or challenges accessing the official market.
In conclusion, the revealed black market rates on the 9th of February 2024 underline the ongoing divergence between official and unofficial exchange rates, encapsulating the broader economic sentiments and confidence levels in Nigeria’s currency.
FAQ – Black Market Dollar to Naira Exchange Rate – 9th February 2024
Q1: What is the black market dollar to naira exchange rate today?
- A1: As of 9th February 2024, the black market exchange rate for the US dollar to the Nigerian naira is ₦1,475.00 for buying and ₦1,482.00 for selling.
Q2: How do these rates compare to the official exchange rate?
- A2: The official exchange rate set by the Central Bank of Nigeria (CBN) is ₦886.89 per US dollar. The black market rates are significantly higher, reflecting a parallel market premium.
Q3: Why is there a difference between the black market and official rates?
- A3: The gap, known as the parallel market premium, is influenced by factors like supply and demand, inflation, political instability, and economic policies, contributing to fluctuations in the black market rates.
Q4: Are these rates uniform across all locations and dealers?
- A4: While the provided rates are indicative, variations may occur based on location and the dealer involved in the transaction.
Q5: How does the black market impact individuals and businesses?
- A5: The black market serves as an alternative for those facing challenges accessing the official market, providing a lifeline for foreign exchange transactions.
Q6: What is the significance of the parallel market premium?
- A6: The parallel market premium reflects the degree of divergence between official and unofficial markets, offering insights into the confidence levels in the naira and the effectiveness of CBN’s policies.
Q7: Is it common for black market rates to fluctuate daily?
- A7: Yes, black market rates are subject to daily fluctuations influenced by various economic factors, making it essential for individuals and businesses to stay informed.
Q8: How does the black market impact Nigeria’s overall economic landscape?
- A8: The black market, though unofficial, plays a crucial role in the economy by providing an alternative avenue for foreign currency transactions, especially for those facing restrictions in the official market.
Q9: Should I rely solely on black market rates for foreign exchange transactions?
- A9: While the black market can be a viable option for some, it’s essential to consider the associated risks and factors influencing the rates. Individuals and businesses should also stay informed about official rates.
Q10: Can the parallel market premium change over time?
- A10: Yes, the parallel market premium is dynamic and can change based on economic conditions, government interventions, and other external factors impacting the foreign exchange market. Stay updated for the latest developments.
Read More: Federal Government Releases N50,000 Grant Beneficiaries List and Requirements
Naira Weakens to N1,479/Dollar, Prompting a 56% Drop in Official FX Transactions
In a significant economic development, the Nigerian Autonomous Foreign Exchange Market (NAFEM) witnessed a substantial decline in the total value of transactions, falling from $465.29 million on Tuesday to $203.93 million on Wednesday, according to data obtained from FMDQ Exchange on Thursday.
This staggering 56% drop in FX transactions on the FMDQ platform, which monitors volume and value of transactions on NAFEM, follows a recent surge in the value of FX transactions. The Central Bank of Nigeria (CBN) had issued a series of circulars, including directives compelling banks to sell excess dollar holdings, as well as urging banks and FX dealers to provide accurate and transparent FX trading data.
The decline in forex transactions appears to be a direct response to these regulatory measures. The CBN’s efforts aimed at stabilizing the foreign exchange market had initially led to increased activities on the platform. However, the recent downturn raises questions about the sustained effectiveness of these measures.
MORE NEWS: FG Unveils Plans to Drastically Reduce Cooking Gas Prices in Nigeria
On Thursday, the naira experienced a 1.4% depreciation against the dollar in the parallel market, trading at N1,480/$, N20 weaker than the N1,460/$ quoted on Wednesday. This depreciation was attributed to heightened demand for dollars in the market.
Forex turnover, a key indicator of market dynamics, has witnessed a noticeable downward trend over the past two days. Starting from $584 million on Monday, it dropped to $465.29 million on Tuesday and further plummeted to $203.93 million on Wednesday. As of the filing of this report at 8:15 pm, Thursday’s turnover figure was yet to be uploaded.
The impact of these developments on the broader economic landscape remains a topic of concern, especially as market participants navigate the shifting dynamics of the foreign exchange market. Observers will be closely monitoring subsequent market activities to gauge the resilience and adaptability of the Nigerian economy in the face of these recent challenges.
JOIN NOW
https://t.me/grandcombat_bot/start?startapp=lYRFU96I5w
Google News Channel
Follow us on Google News for Latest Headlines
Join Our WhatsApp, Facebook, or Telegram Group For More News, Click This Link Below;
WhatsApp Channel
https://whatsapp.com/channel/0029VaELqhlHVvTXjDnUf80h
WhatsApp Group
https://chat.whatsapp.com/G6Lo3ss6WKLCOqBphZwQGk
Facebook Page
https://facebook.com/allmedia24news
Our Twitter Page
https://www.twitter.com/allmedia24news
Telegram Group
https://www.threads.net/@allmedia24news
