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Nigeria’s Naira Plummets to Record-Low 1,300 Per Dollar on the Parallel Market

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The Nigerian Naira remained at a historic low of 1,300 Naira per US dollar on the parallel market as low dollar liquidity amid rising demand continues to drag on the local currency value.

The unnerving development was revealed on Thursday as the online platform, abokiFX, showcased the grim milestone.

This devaluation comes as a consequence of various factors, including reduced trading activity on the black market and persistent dollar shortages in the official market.

It accentuates the Naira’s unrelenting depreciation in the unofficial market since the removal of currency restrictions on the official foreign exchange market.

Merely a month ago, the Naira had surpassed the 1,000 Naira per dollar mark on the black market, underscoring the country’s deteriorating financial stability.

Amid these challenging circumstances, Nigeria’s Central Bank Governor, Yemi Cardoso, assured the public that the Naira would adjust once the regulatory framework for market participants became more transparent.

This attempt to reassure the market offered some respite, with the official market rate rebounding from its all-time low of 999 Naira per dollar last week, recovering to 775 Naira per dollar.

Finance Minister Wale Edun shared that Nigeria was anticipating foreign currency inflows of around $10 billion in the coming weeks.

These inflows are expected to ameliorate liquidity concerns in the foreign exchange market, resulting from instrument issuances in dollars, revenue from oil sales, and foreign investments.

While the prospect of increased foreign exchange inflows has somewhat slowed the Naira’s depreciation on the official market, the black market rate continues to experience a plunge due to limited trading activities.

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Naira

Black Market Dollar to Naira Exchange Rate Today, February 26th, 2024

As of February 26th, 2024, the exchange rate for the US dollar to the Nigerian Naira stands at 1 USD to 1,660 NGN in the black market, also referred to as the parallel market or Aboki fx.

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As of February 26th, 2024, the exchange rate for the US dollar to the Nigerian Naira stands at 1 USD to 1,660 NGN in the black market, also referred to as the parallel market or Aboki fx.

For those engaging in currency transactions in the Lagos Parallel Market (Black Market), buyers purchase a dollar for N1,610 and sell it at N1,600 on Friday, February 23rd, 2024 based on information from Bureau De Change (BDC).

Meaning, the Naira exchange rate declined when compared to today’s rate below.

This black market rate signifies the value at which individuals can trade their dollars for Naira outside the official or regulated exchange channels.

Investors and participants closely monitor these parallel market rates for a more immediate reflection of currency dynamics.

How Much is Dollar to Naira Today in the Black Market?

Kindly be aware that the Central Bank of Nigeria (CBN) does not acknowledge the existence of the parallel market, commonly referred to as the black market.

The CBN has advised individuals seeking to participate in Forex transactions to utilize official banking channels.

Black Market Dollar to Naira Exchange Rate

  • Buying Rate: N1,660
  • Selling Rate: N1,650

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Naira

Dollar to Naira Black Market Today, February 23rd, 2024

As of February 23rd, 2024, the exchange rate for the US dollar to the Nigerian Naira stands at 1 USD to 1,610 NGN in the black market, also referred to as the parallel market or Aboki fx.

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Naira Dollar Exchange Rate - Investors King

As of February 23rd, 2024, the exchange rate for the US dollar to the Nigerian Naira stands at 1 USD to 1,610 NGN in the black market, also referred to as the parallel market or Aboki fx.

For those engaging in currency transactions in the Lagos Parallel Market (Black Market), buyers purchase a dollar for N1,650 and sell it at N1,640 on Thursday, February 22nd, 2024 based on information from Bureau De Change (BDC).

Meaning, the Naira exchange rate improved when compared to today’s rate below.

This black market rate signifies the value at which individuals can trade their dollars for Naira outside the official or regulated exchange channels.

Investors and participants closely monitor these parallel market rates for a more immediate reflection of currency dynamics.

How Much is Dollar to Naira Today in the Black Market?

Kindly be aware that the Central Bank of Nigeria (CBN) does not acknowledge the existence of the parallel market, commonly referred to as the black market.

The CBN has advised individuals seeking to participate in Forex transactions to utilize official banking channels.

Black Market Dollar to Naira Exchange Rate

  • Buying Rate: N1,610
  • Selling Rate: N1,600

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Naira

Naira Appreciates Slightly to N1,542.58/$ at NAFEM

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New Naira notes

The Naira appreciated marginally against the United States dollar, closing at N1,542.58/$ at the Nigerian Autonomous Foreign Exchange Market (NAFEM) on Wednesday.

This modest gain represents a 2.9 percent appreciation from the previous day’s rate of N1,598.54, highlighting a nuanced fluctuation in the currency’s value.

According to data sourced from the FMDQ Securities Exchange, a platform overseeing FX trading in Nigeria, the Naira’s journey throughout the trading day was marked by an intra-day high of N1,755 and a low of N1,050.

Moreover, the total foreign exchange turnover surged to $172.14 million, indicating a 47 percent increase from the previous day.

Despite the Naira’s marginal gain at NAFEM, concerns persist regarding the widening gap between the official and parallel market rates.

The Naira’s depreciation to N1,900 against the dollar in the parallel market before it moderated to N1,687 later in the day.

Analysts and Bureau De Change operators foresee further pressure on the Naira, with predictions of a potential all-time low of 2,000/dollar at the parallel market in the coming weeks.

The demand for the greenback continues to fuel volatility, prompting regulatory actions from entities like the Economic and Financial Crimes Commission (EFCC) and the Central Bank of Nigeria (CBN) to curb speculative activities.

As stakeholders monitor the currency’s trajectory, the CBN’s efforts to address forex liquidity challenges and stabilize the Naira remain under scrutiny amidst evolving market dynamics.

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