Stay updated on the ever-changing Dollar to Naira exchange rate in the black market. At https://ebiraonline.com.ng, you can rely on consistent updates. This platform is the preferred choice of many Nigerians for authentic financial news.
Dollar To Naira Black Market Rate – August 19th, 2023
On August 19th, 2023, right within the bustling Lagos Parallel Market, often referred to as the “black market,” specific updates concerning exchange rates were observed.
Purchase Rate: N830
Sale Rate: N860
These particular figures hold significance for individuals engaged in Nigeria’s foreign exchange sector, particularly when engaging with traders within the unofficial segment commonly known as the black market.
“In the realm of foreign exchange, rates provided by the black market frequently deviate from the standardized rates presented by traditional banks and financial institutions.”
This variance arises from a blend of economic factors, including:
- Balance of supply and demand
- Governmental strategies
- Global economic climate
Understanding this divergence equips businesses and consumers with crucial insights into Nigeria’s economic pulse and its potential trajectory.
The Official Market: Central Bank of Nigeria Rates
Interestingly, the Central Bank of Nigeria maintains its official dollar to naira exchange rate:
Data Validity: August 19th, 2023
CURRENCY BUYING(NGN) CENTRAL(NGN) SELLING(NGN) US DOLLAR 743.635 744.135 744.635 POUNDS STERLING 946.7961 947.4327 948.0693 EURO 808.3312 808.8747 809.4182 SWISS FRANC 843.6975 844.2648 844.8321 YEN 5.119 5.1124 5.1259 CFA 1.2187 1.2287 1.2387 WAUA 990.6204 991.2864 991.9525 RIYAL 198.1864 198.3197 198.4529 DANISH KRONA 108.4633 108.5362 108.6091 SDR 989.5551 990.2204 990.8858
When examining this rate, the substantial difference compared to figures from the black market becomes evident. Given this notable contrast, it becomes essential for traders and investors to have comprehensive awareness of both metrics to navigate the financial landscape effectively.
“The Central Bank of Nigeria does not recognize parallel market rates and advises entities to consult their banks for official forex rates.”
“Aboki” – A Detailed Insight into Basic Forex Transactions
In Nigerian parlance, “Aboki” denotes streetwise forex traders. Hence, the Aboki dollar rate provides genuine insight into the challenges Nigerians encounter in the daily forex scene.
“In the realm of foreign exchange, the Aboki rate goes beyond figures; it encapsulates the day-to-day experiences of Nigerians.”
CBN Sets New Rules for BDCs to Stabilize Dollar Rate
The Central Bank of Nigeria (CBN) has introduced new regulations for Bureau De Change (BDC) operators to enhance the efficiency of the foreign exchange market. This follows a two-year period during which CBN ceased dollar sales to BDCs to stabilize the market. The new guidelines do not confirm a resumption of dollar sales to BDCs.
As per a recent circular, the margin for BDC buying and selling is set between -2.5% and +2.5%, based on the previous day’s average exchange rate. BDCs are required to submit regular reports via the Financial Institution Form Rendition System (FIFX). Failure to do so jeopardizes their licenses. Even in the absence of transactions, reporting no activity is mandatory.
In August 2021, CBN ceased forex sales to BDCs, citing misuse for illicit forex activities. Instead, forex sales would occur through commercial banks, as declared by then-governor Godwin Emefiele. He expressed concerns about BDCs engaging in corrupt practices.
Recently, acting CBN governor Folashodun Shonubi met with President Bola Tinubu. He attributed the high dollar-to-naira exchange rate at BDCs to speculators. Measures will be introduced to counter speculative activities.
Shonubi emphasized to the press that the parallel market is influenced not solely by economic demand and supply, but also by speculators. He briefed President Tinubu on forthcoming plans, suggesting that speculators might face substantial losses in the near future.