This post is about the current Dollar to Naira exchange rate in the black market today. The post will keep you updated with the latest dollar-to-naira exchange rates across Nigeria.
Dollar to Naira Exchange Rate
As of today, the official CBN rate stands at:
Dollar to naira exchange rate today:
SELL $1 = N1,538
Central = N1539.24
BUY $1 = N1570
Sell price: it’s the price at which the market is selling.
Buy price: it is the Price at which the market is buying.
You can use the quick links below for easier navigation
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See the Dollar to Naira Calculator here
Dollar to Naira Exchange Rate on the Black Market
The Dollar to Naira Exchange Rate in the Black Market (Parallel Market) as of today stands at:
Buy : $1 = N1570
Sell: $1 = N1,538
What is the Black Market?
According to Wikipedia, a black market is a clandestine market or series of transactions that has some aspect of illegality or is characterised by some form of noncompliant behaviour with an institutional set of rules.
If the rule defines the set of goods and services whose production and distribution are prohibited by law, non-compliance with the rule constitutes a black market trade since the transaction itself is illegal.
However, people prefer the use of the black market at times because of the availability of cheap services they provide. Traders in the black market are always ready to sell a bit below the normal price from the conventional markets around.
A lot of things are being sold in the black market. However, our concern here is on the trading of currencies in the black market.
Dollar to Naira Exchange Rate
There is a big divide between the official Dollar to Naira rate and the rate in the black market. The official CBN rate stands at N1539.24 per US Dollar ($) Centrally.
1 US dollar sells for N1,538 and is being bought for the sum of N1570. The parallel market rate (black market) is stated above.
Although these rates are subject to unexpected changes due to the instability of the forex market, they are overly high, to say the least.
The result of such a high exchange rate for the dollar is that Nigerians spend so much to buy so little, especially when it comes to foreign or imported goods. Also, consider Nigerians who have to pay medical and educational bills in this foreign currency.
Exchange Rate (Dollar To Naira) in Black Market History
Date Open High Low Change% 1,542.470 1,542.670 1,550.500 1,537.745 -0.01% 1,542.665 1,549.865 1,552.330 1,539.460 -0.47% 1,549.880 1,548.530 1,552.520 1,544.850 +0.06% 1,548.905 1,547.040 1,553.270 1,544.850 -0.07% 1,550.015 1,549.500 1,555.750 1,544.760 +0.09% 1,548.610 1,548.800 1,554.200 1,545.290 -0.01% 1,548.795 1,546.945 1,552.805 1,543.695 +0.12% 1,546.940 1,543.170 1,549.900 1,542.375 +0.12% 1,545.150 1,543.485 1,549.880 1,542.085 +0.11% 1,543.490 1,548.600 1,558.800 1,541.375 -0.09% 1,544.875 1,541.505 1,562.500 1,537.900 +0.29% 1,540.380 1,559.000 1,559.000 1,533.000 -0.18% 1,543.100 1,544.165 1,559.000 1,538.500 -0.07% 1,544.190 1,558.105 1,560.015 1,539.420 -0.89% 1,558.120 1,560.500 1,562.500 1,554.830 0.00% 1,558.155 1,560.015 1,563.245 1,554.580 -0.04% 1,558.845 1,577.470 1,583.425 1,554.840 -1.18% 1,577.380 1,581.265 1,584.500 1,573.130 -0.24% 1,581.235 1,582.000 1,587.075 1,578.000 -0.19% 1,584.210 1,587.000 1,590.500 1,580.275 -0.24% 1,587.950 1,589.810 1,591.585 1,585.880 -0.12% 1,589.810 1,585.640 1,592.760 1,585.320 +0.15% 1,587.470 1,585.350 1,589.715 1,584.350 +0.06%
Reasons Why The Naira is So Poor Against The Dollar
Why is the Nigerian Naira so poor in relation to the US dollar? This question has been in my consciousness for a very long time, and I guess it has, at some point, bothered you as well. The American dollar is among the most valued currencies in the world. At least, it is used as the standard exchange currency. However, it’s worth noting that less than 30 years ago, the naira was equal to or better than the dollar in value. In fact, between 1970-1975, 79kobo was equal to $1. So, why has the Nigerian Naira fallen so flat against the US dollar? some of the major reasons discourse below:
Devaluation Of The Nigerian Currency
The 1970s oil boom in Nigeria placed Nigeria amongst the richest countries in the world. This was the period that the then Nigerian military head of state, General Murtala Mohamed, said that “the problem of Nigeria is not money but what to do with money.”
The Nigerian economy was so strong then. However, In the early 1980s, the price of oil in the foreign market dropped ridiculously.
Hence, Nigeria got into a financial mess and difficulty because we depended on oil revenues for almost all of our foreign exchange needs. In order to help salvage the situation, Nigerian governments have tried to borrow money from the IMF and World Bank at different times.
However, the borrowing comes with certain conditionality, which amongst others, is the devaluation of a nation’s currency. As we continued to borrow from the IMF and World Bank, that was how we continued to devalue the Nigerian Naira until it got so worst than we have it today.
Excessive Importation
Nigeria is a country that depends so much on imported goods and products. Necessities like rice, plantain, fish, toothpicks, spoons, etc., are all imported on a daily basis for Nigerians. Talk about things such as electrical appliances, cars, furniture etc. Nigeria will literally crumble if we do not import these things. A country that imports so much will definitely have a poor currency.
The effect of this over-importation is that more money leaves the shores of Nigeria than the ones that come into Nigeria.
Hence, while the currencies of the countries that import all these things into the shores of Nigeria get stronger, that of Nigeria gets weaker comparatively.
Poor Investment In Exportation
Nigeria is blessed! You can take my word for it. The country boasts vast deposits of mineral resources, human resources as well as numerous tourist attractions.
Still, the federal government has chosen to largely ignore these export sources and focus largely on crude oil, whose value is fast depreciating.
Nigeria still exports crude oil and imports Premium Motor Spirit (petrol), gasoline, Kerosene and other constituents of crude oil, which should’ve been refined within the country, but guess what? Many of our refineries are barely functional. The naira can only gain value if the country invests in the exportation of finished products instead of doing the opposite.
Dwindling Economy
Sadly enough, the Nigerian economy, which used to be the best in Africa and among the best in the world, has been reduced to nothing as a result of our dependency on only oil.
Nigeria’s GDP still puts the country as one of the top economies in Africa, but our poor performance abroad, coupled with the collapse of oil prices, has left the Nigerian economy dwindling into a full-blown recession. With a poor economy comes a poor currency. However, with the recession now declared over, an end might be in sight.
The Nigerian Mentality
The general Nigerian mentality about foreign-made products is that anything foreign is far better than homemade. That’s a very bad mentality to have.
Foreign nationals would rather buy locally made products to support their countrymen, like the Asian Tigers. But sadly, this is not the case with Nigerians. Our love for everything foreign has made the dollar gain so much ground against the Naira.
Also, it must be mentioned here that mindset was not natural to Nigerians. it was introduced to us by our colonial masters, that tried to discourage the consumption of all locally made products in favor of their imported products. this colonial mindset is still affecting us to date.
Excessive looting
The Nigerian state is being robbed blind by corrupt politicians. Tell you what; trillions of naira have been looted from public coffers by politicians saddled with the responsibility of using these funds for the betterment of the country.
These stolen funds are usually converted into foreign currencies, especially dollars and kept in foreign banks. This has further made the naira so cheap against the dollar.
Dollar to Naira in Black Market
The black market is the same as the parallel market. The dollar changes for more there. The dollar-to-naira black market rate is ₦1614. That is, $1 = ₦1614.
That is, One United States dollar equals seven hundred and forty-seven Nigerian nairas.
Quick Facts To Know About The US Dollar
- The dollar symbol ($) was coined from the previously used American currency known as the Spanish Peso.
- The United States dollar is not made of paper; it’s made of cotton, silk fibres and linen blend.
- The $2 bill is barely in circulation. That’s why it’s known as the “Luck dollar.”
- The Dollar is the official currency of over 20 countries in the world.
- The US dollar has over 70 recognized nicknames.
- The US dollar was brought into existence by the Coinage Act of 1792
- The US dollar is equivalent to 100 cents, usually in coins.
- The first US paper dollar came into existence in 1875
- The largest dollar bill ever printed was the $100,000 bill, although that bill was never in general circulation.
- The arrows in the eagle’s left talon at the back of the $1 bill represent peace.
Dollar(USD) to Naira(N) History
Through 2013, 2014 and early 2015, the dollar was exchanged for about 160 nairas. In late 2015 and all through 2016, it was exchanged for 200 nairas. In 2017, it jumped to 300+ naira per dollar. Now it exchanges for more than 1,500 nairas.
Quick info
- Crude oil price is currently at $65.52 per barrel.
- Inflation rate in Nigeria is at 23.71%
- Money Policy Rate, MPR is at 27.5%%
So that is it, guys. Do you still have any other thing you would like to know or ask us? You can quickly use the comment section down below. Also, you can use the share button below to share this article with your friends on social media. Thanks.
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