The dollar to naira black market exchange rate remains a critical indicator for individuals and businesses engaged in foreign transactions in Nigeria.
With the official exchange rate often differing from the parallel market, many Nigerians rely on black market rates for accurate and real-time foreign exchange updates.
As of 5th February 2025, the black market exchange rate for dollar to naira stands as follows:
- Buying Rate: ₦1,607 per $1
- Selling Rate: ₦1,590 per $1
How Much Is Dollar to Naira Today in Black Market?
For those looking to exchange dollars, the black market rate for today, 5th February 2025, is ₦1,607 per dollar for those selling, while those buying will get ₦1,590 per dollar. This rate fluctuates based on demand and supply factors in the parallel market.
Factors Affecting the Dollar to Naira Exchange Rate
Several elements contribute to the volatility of the dollar to naira black market rate, including:
- Dollar Supply and Demand – A high demand for dollars often leads to an increase in the exchange rate, while increased supply can cause the naira to gain strength.
- CBN Policies – The Central Bank of Nigeria’s (CBN) interventions, including forex restrictions and interest rate adjustments, impact the parallel market rate.
- Inflation and Economic Stability – Rising inflation weakens the naira, making it more expensive to buy foreign currencies.
- Global Market Trends – Oil price fluctuations and international economic conditions affect Nigeria’s forex reserves and, consequently, the exchange rate.
- Remittances and Capital Inflows – Increased foreign remittances can help stabilize the naira, while capital flight exerts pressure on the currency.
CBN Official Rate vs. Black Market Rate
While the official exchange rate set by the CBN is often lower than the parallel market rate, the gap between the two has widened due to forex restrictions and market speculations. The CBN’s official exchange rate is usually accessible to select individuals and businesses, while the black market rate reflects the actual forex demand among traders, importers, and individuals needing dollars for transactions.
For real-time updates on the official exchange rate, visit CBN’s website.
Should You Buy Dollars in the Black Market?
Despite the accessibility of the parallel market, individuals and businesses should exercise caution when engaging in black market forex transactions due to:
- The illegality of black market forex trading under Nigerian financial laws.
- The high volatility in exchange rates leading to potential financial losses.
- The risk of counterfeit currency in unregulated markets.
Future Projections for the Naira
Analysts predict that the naira’s exchange rate may continue to face pressure due to Nigeria’s economic challenges, forex demand, and global economic trends. However, potential CBN interventions, increased foreign investments, and stronger export revenues could help stabilize the local currency in the coming months.
Conclusion
The dollar to naira black market exchange rate for today, 5th February 2025, remains high, with the buying rate at ₦1,607 and the selling rate at ₦1,590. Factors such as CBN policies, inflation, and forex supply continue to shape exchange rate trends. Individuals should stay informed and make forex decisions based on credible market insights.
For daily updates on the dollar to naira black market exchange rate, visit Investors King.