Current Dollar to Naira Exchange Rate in Black Market and Aboki FX as of today 5th July 2024
What is the Dollar to Naira Exchange rate at the black market also known as the parallel market ?
See the black market Dollar to Naira exchange rate for 4th July, below. You can swap your dollar for Naira at these rates.
Dollar to Naira Exchange Rate Today: A Snapshot of the Black Market and Official Rates
As of Friday, July 5, 2024, the exchange rate for the dollar to naira in the Lagos Parallel Market (commonly referred to as the black market) shows significant activity and fluctuation. According to sources at Bureau De Change (BDC), the exchange rates are as follows:
| Market | Buying Rate (NGN per USD) | Selling Rate (NGN per USD) |
|---|---|---|
| Black Market | N1515 | N1520 |
| Official CBN Rates | N1510 | N1511 |
Understanding the Black Market Rates
The black market exchange rate is not officially recognized by the Central Bank of Nigeria (CBN). The CBN encourages individuals seeking foreign exchange to conduct their transactions through official banking channels. Despite this, the black market continues to be a popular choice due to its accessibility and often more competitive rates compared to the official market.
Naira’s Performance in the Forex Market
The naira has recently experienced depreciation in both the parallel and official markets, reflecting ongoing economic pressures. On Wednesday, the naira’s value dropped to N1520 per dollar in the parallel market, compared to N1515 per dollar just the day before. This continuous slide indicates increasing volatility.
Trends in the Nigerian Autonomous Foreign Exchange Market (NAFEM)
Similarly, the NAFEM reported a depreciation of the naira, which fell to N1512.61 per dollar from N1509.45 per dollar on Tuesday. This decline of N3.16 per dollar underscores the challenges faced in stabilizing the naira amidst fluctuating market dynamics.
Decline in Market Activity
Data from the Financial Market Dealers Quotations (FMDQ) showed a significant reduction in trading volume. The volume of dollars traded dropped by 98.4%, from $213.31 million on Tuesday to just $114.91 million on Wednesday. This sharp decline reflects the cautious approach of investors and traders in response to the unstable exchange rates.
Widening Gap Between Market Rates
The disparity between the parallel market rate and the NAFEM rate has widened, now standing at N7.39 per dollar, up from N5.55 per dollar on Tuesday. This growing gap highlights the increasing challenges in currency stabilization and raises questions about the effectiveness of current policy measures aimed at managing exchange rate dynamics.
Conclusion
The dollar to naira exchange rate continues to fluctuate, reflecting broader economic uncertainties. The widening gap between the parallel and official rates signals potential instability and the need for effective policy interventions. For those engaging in forex transactions, staying informed about the latest rates and market trends is crucial. Always consider consulting official sources and financial advisors to navigate these complex market conditions effectively.
Stay updated with the latest forex rates and financial news on GoldenNewsNg.com to make informed decisions in these turbulent times.
