The black market, also known as the parallel market, is where foreign currencies are traded unofficially at rates that differ from the official exchange rate set by the Central Bank of Nigeria (CBN).
The black market is often used by individuals and businesses who cannot access the official market due to scarcity, restrictions, or regulations.
The black market exchange rate of the US dollar to the Nigerian naira fluctuates daily depending on the supply and demand of the currencies, as well as other factors such as inflation, political instability, and economic policies.
The black market rate is usually higher than the official rate, meaning that the naira is weaker in the black market.
Dollar to Naira Exchange Rate Today?
The black market dollar to naira exchange rate today, 2nd March 2024, is as follows:
- Buying rate: ₦1,460.00 per US dollar
- Selling rate: ₦1,485.00 per US dollar
This means that if you want to buy 1 US dollar in the black market today, you will need to pay 1,485.00 naira, and if you want to sell 1 US dollar, you will receive 1,460.00 naira.
NB: These rates may vary slightly depending on the location and the dealer.
How does the black market dollar-to-naira exchange rate compare to the official rate?
The official exchange rate of the US dollar to the Nigerian naira, as of today, is ₦1,460 per US dollar.
This is the rate that the CBN uses for its transactions and interventions in the foreign exchange market. The official rate is also the basis for the exchange rates of other foreign currencies, such as the euro, the pound sterling, and the Chinese yuan.
The difference between the black market rate and the official rate is called the parallel market premium. The parallel market premium indicates the degree of divergence between the official and unofficial markets and reflects the level of confidence in the naira and the CBN’s policies.