As of November 25, 2023, the black market, also known as the parallel market, continues to exhibit fluctuations in the Dollar to Naira exchange rate. Individuals seeking to swap their dollars for Naira are encountering varying rates in this informal market.
Black Market Exchange Rates (Aboki FX) – November 24, 2023:
- Buying Rate: N1150
- Selling Rate: N1155
This data, sourced from Bureau De Change (BDC) entities at the Lagos Parallel Market, indicates the dynamics of the informal exchange process. However, it’s essential to note that the Central Bank of Nigeria (CBN) officially disapproves of the parallel market, directing individuals to conduct forex transactions through their respective banks.
CBN Official Rates:
- Buying Rate: 837
- Selling Rate: 838
Discrepancies between these rates and those individuals experience in actual transactions are common due to market variations.
Official Forex Window Decline:
The official Investor and Exporter forex window witnessed a decline in the value of the naira on November 24, 2023. The US Dollar supply reduced by 46.77%, resulting in a 13.78% decline from the previous day’s closing rate of N840.53 against the US Dollar. The forex market experienced decreased dollar volumes, with turnover falling from $198.21 million on Wednesday to $105.50 million.
The naira’s performance exhibited fluctuations throughout the day, ranging from a high of N1136/$ to a low of N615/$. Eventually, it closed trading at N956.33/$.
Despite the Central Bank of Nigeria’s efforts to address the backlog of foreign exchange forward contracts, the naira remains susceptible to instability, reflecting a broader challenge. Recent data from the World Bank indicates that the naira is one of the worst-performing currencies globally, having lost approximately 40% of its value since June. This highlights the ongoing concerns surrounding Nigeria’s currency stability and the impact on the nation’s economy.
