In the latest foreign exchange developments, the Dollar to Naira exchange rate in the black market (also known as the parallel market or Aboki fx) is as follows:
Dollar to Naira Black Market Rate Today
Buying Rate: N1160
Selling Rate: N1165
CBN Exchange Rate Today:
Buying Rate: 822
Selling Rate: 823
Note: The Central Bank of Nigeria (CBN) does not officially recognize the parallel market and advises individuals engaging in Forex transactions to approach their respective banks.
These rates, however, may vary based on market dynamics and individual transactions. It is essential for individuals to check with their banks for the most accurate and up-to-date rates.
In a related development, President Bola Tinubu presented the ‘Budget of Renewed Hope’ for 2024 before the National Assembly. The proposed budget is N27.5 trillion, featuring non-debt recurrent expenditure of 9.92 trillion naira, debt service of 8.25 trillion naira, and capital expenditure of 8.7 trillion naira. The oil price benchmark is set at $77.96 per barrel, with a Naira to US Dollar exchange rate of 750.
Factors Impacting Exchange Rates
1. Inflation Rates: Inflation plays a significant role in determining black market exchange rates. Stabilizing the Nigerian economy and controlling inflation can contribute to the strengthening of the Naira against the Euro.
2. Interest Rates: Keep a vigilant eye on interest rates, as a rise in the rates at which banks lend money can contract the economy, leading to a depreciation of the Naira.
3. Government Debt: National debt levels impact investor confidence and fund influx. Higher inflows can favor the Naira in the exchange market.
4. Speculators: Speculative activities can significantly impact exchange rates. Anticipated gains can lead to hoarding, causing fluctuations in the Naira’s value.
5. Conditions of Trade: Favorable trade terms can enhance the Naira’s value. Nigeria’s current trade deficit, sourcing products from various countries, including China and India, plays a role in the exchange rate dynamics.
