Dollar to naira black market today has been going up and down. For the past few weeks, the price of dollar to naira black market rate has been in a downward movement. 1 dollar to naira exchange rate today at the black market is higher than CBN and Bank rate. Aboki is the major player in the dollar black market. Most People buy and sell dollar at aboki currency shops across Nigeria.
Why the Dollar to Naira Black Market Rate Varies
One of the reasons dollar to naira varies a lot in the black market is due to the state of Nigeria’s economy. When the economy is strong, the Naira tends to be strong against the Dollar, and when the economy is weak, the Naira tends to weaken.
Inflation is another reason we can’t neglect. If Nigeria experiences high inflation, the purchasing power of the Naira decreases, which can lead to a higher exchange rate on the black market. Also, if inflation is low, the Naira’s purchasing power is stronger, potentially leading to a lower exchange rate.
Dollar to Naira Exchange Rate History
The history of the Dollar to Naira exchange rate is a tale of economic fluctuations, shaped by oil prices, political instability, and economic policies. The Nigerian Naira was introduced in 1973, replacing the British pound at a rate of 2 Naira = 1 pound. This made Nigeria the last former British colony to abandon the £sd currency system in favor of the decimal currency system.
The Naira was relatively stable against the Dollar in its early years. In the late 1970s and early 1980s, the oil boom era, the Naira was strong against the Dollar, trading at around 0.658 Naira to 1 Dollar. However, by the late 1980s, the Naira had started to weaken due to falling oil prices and economic mismanagement.
By 1985, the Naira was devalued for the first time, leading to an increase in the Dollar to Naira exchange rate. The devaluation was part of a Structural Adjustment Program (SAP) introduced by the then military government to revive the economy. The devaluation continued throughout the 1990s and early 2000s, with the Naira trading at over 100 to 1 Dollar by 2002.
In 2008, the global financial crisis led to a sharp fall in oil prices, causing the Naira to depreciate further. Despite efforts by the Central Bank of Nigeria (CBN) to stabilize the Naira, the exchange rate continued to rise, reaching 360 Naira to 1 Dollar by 2017.
In 2020, the COVID-19 pandemic and the subsequent drop in oil prices have put additional pressure on the Naira. Same year, the CBN devalued the Naira twice, leading to a significant increase in the Dollar to Naira exchange rate. Today 21 May 2024,
Dollar to Naira Black Market Today
The term ‘Dollar to Naira Black Market’ refers to the informal or parallel market where the exchange rate between the US dollar and the Nigerian Naira is determined. This market operates outside the purview of government regulation, hence the term ‘black market’.
In the black market, rates witness constant fluctuation, unlike the official exchange rate set by the Central Bank of Nigeria. The black market rate often provides a more accurate reflection of the currency’s true value.
The black market for currency exchange emerges when there’s a disparity between the official exchange rate and the rate that market forces would naturally set. This is often due to government restrictions on currency exchange. As at today 21 May 2024, the current dollar to naira in the black market is 1,450 naira.
| US dollar | Nigerian Naira (₦) |
|---|---|
| $1 | ₦1,450 |
| $5 | ₦7,250 |
| $10 | ₦14,500 |
| $20 | ₦29,000 |
| $50 | ₦72,500 |
| $100 | ₦145,000 |
| $200 | ₦290,000 |
| $500 | ₦725,000 |
| $1,000 | ₦1,450,000 |
| $5,000 | ₦7,250,000 |
| $10,000 | ₦14,500,000 |
How Much is 1 dollar to Naira
The exchange rate between the US dollar and the Nigerian Naira varies daily. The black market rate is usually different from the official rate provided by financial institutions. As of today 21 May 2024, the price of 1 dollar to naira in black market is 1,450.