Naira continues to weaken as black market exchange rate reaches N1165/$1

By Sodiq Adelakun

In the latest developments in the foreign exchange market, the black market exchange rate for the Dollar to Naira, also known as the parallel market or Aboki fx, has been reported.

According to sources from Bureau De Change (BDC) yesterday, players in the Lagos Parallel Market are purchasing a dollar for N1162 and selling it at N1165.

It is important to note that the Central Bank of Nigeria (CBN) does not officially recognise the parallel market and advises individuals engaging in Forex transactions to approach their respective banks.

The CBN’s official exchange rate for the Dollar to Naira stands at a buying rate of 952 and a selling rate of 953.

However, it is crucial to keep in mind that these rates may vary based on market dynamics and individual transactions.

Therefore, individuals are advised to check with their banks for the most accurate and up-to-date rates. Several factors influence foreign exchange rates, including inflation rates, interest rates, government debt levels, speculative activities, and conditions of trade.

Inflation plays a significant role in determining black market exchange rates, and stabilising the Nigerian economy and controlling inflation can contribute to the strengthening of the Naira against the Dollar.

Additionally, changes in interest rates can impact the economy and lead to a depreciation of the Naira. National debt levels also impact investor confidence and fund influx, which can favor the Naira in the exchange market.

Speculative activities and conditions of trade, such as trade deficits and sourcing products from various countries, also play a role in the exchange rate dynamics.

Meanwhile, individuals and businesses involved in foreign exchange transactions should stay informed about these factors and consult with their banks for the most accurate rates.