The dollar to naira black market exchange rate continues to fluctuate as economic factors, foreign exchange policies, and demand pressures shape Nigeria’s forex landscape.
On Thursday, February 20, 2025, the naira traded weaker in the parallel market as demand for dollars surged amid limited supply.
How Much is Dollar to Naira Today in Black Market?
As of today, the dollar to naira black market exchange rate stands at:
- Buying Rate: ₦1,508/$1
- Selling Rate: ₦1,525/$1
These rates are sourced from reliable forex platforms, including Aboki Forex, Investors King, and street traders across key financial hubs such as Lagos, Abuja, and Kano.
CBN Exchange Rate vs. Black Market Rate
The Central Bank of Nigeria (CBN) maintains a different official exchange rate, which is significantly lower than the rates in the black market. The disparity between the official and parallel market rates has fueled increased patronage of the black market, as businesses and individuals struggle to access forex through official channels.
Factors Influencing the Black Market Exchange Rate
Several factors impact the dollar to naira exchange rate in the black market, including:
- Dollar Demand and Supply: Importers, students, and travelers often face restrictions in accessing forex at the official rate, driving them to the parallel market.
- CBN Forex Policies: The apex bank’s intervention strategies, such as forex restrictions on certain imports, influence black market trends.
- Inflation and Economic Stability: The weakening of the naira is linked to Nigeria’s inflation rate, foreign reserves, and macroeconomic stability.
- Foreign Investment Flows: Reduced inflows from foreign direct investment (FDI) and portfolio investors also affect forex availability.
Implications of Rising Exchange Rates
A weaker naira has direct consequences on the Nigerian economy, including:
- Higher Cost of Goods and Services: Businesses that rely on imported raw materials face increased production costs.
- Increased Inflation: The rising exchange rate translates to higher food and commodity prices.
- Pressure on Businesses and Consumers: Households and companies struggle to maintain purchasing power amid declining currency value.
What to Expect in the Coming Days
Analysts suggest that the dollar to naira exchange rate may remain volatile as Nigeria grapples with forex liquidity challenges and economic policy adjustments. Market participants are closely watching the CBN’s intervention measures and government strategies aimed at stabilizing the forex market.
For real-time updates on forex rates, visit Aboki Forex and Investors King. Stay informed to make the best financial decisions in this ever-changing forex market.
