Euro hits record high against Naira, surges to N1,667.298 in black market

By Sodiq Adelakun

The Euro has reached unprecedented heights against the Nigerian Naira, soaring to an exchange rate of N1,667.298 in the black market as of March 20, 2024.

This surge underscores a remarkable 46 percent appreciation of the European currency over the past year compared to the Naira.

The parallel market, often termed the black market, reflects the fluidity of the foreign exchange sector, driven primarily by supply and demand dynamics rather than official central bank rates.

This significant fluctuation underscores the challenges faced by Nigeria’s economy and the impact on its citizens, highlighting the need for robust economic policies to stabilise currency markets and mitigate inflationary pressures.

This rate is crucial for Nigerians engaging in transactions with Europe, whether for business, education, or tourism purposes.

Traditionally, Bureau De Change Operators (BDCs), commonly referred to as ‘Abokis,’ facilitate the majority of these foreign currency exchanges in Nigeria.

These operators are known for providing rates that are more attractive than those offered by commercial banks, coupled with the advantage of speed and convenience in transactions.

However, the attractiveness of the black market rates comes with the caveat of regulatory absence.

The government and the Central Bank of Nigeria (CBN) do not regulate these rates, leading to their determination by the prevailing market forces within the informal sector.

Such a scenario often results in exchange rates that are markedly higher than the official figures.

The susceptibility of the black market to rapid fluctuations is influenced by a myriad of elements, including the availability of foreign currency, overarching economic conditions, and speculative trading.

These factors collectively contribute to the inherently volatile nature of black market exchange rates, presenting challenges for individuals and businesses alike navigating currency transactions.

With the Euro currently pegged at N1,667.298 to the Naira in the black market, the financial landscape for transactions involving these currencies is becoming increasingly complex. For instance, at this exchange rate, 100 Euros would translate to approximately N166,729.80, while 1,000 Euros would command a hefty N1,667,298.00.

This surge in the Euro’s value against the Naira underscores the impact of external factors on Nigeria’s economy and the daily lives of its citizens. As fluctuations persist, individuals and businesses must navigate these challenges with caution, highlighting the need for adaptable financial strategies in the face of volatile currency markets.