Dollar to Naira Black Market Rate (23 June 2023)

• Check the exchange rates between the Dollar and Naira on the Black Market for June 23, 2023.
• Understand how the Black Market works.
• Get info about a new rule from the Central Bank of Nigeria that might make Nigeria’s exports more valuable.

The Current Dollar to Naira Exchange Rate in the Black Market

Today, we’re going to talk about a topic that many people ask about: the dollar to naira exchange rate in the black market, also known as the parallel market or the Aboki fx.

This might sound hard but don’t worry. We will make it easy to understand.

What is Black Market

Let’s see what we mean by “black market.” This term refers to an unofficial marketplace where goods or services are traded without government regulation.

In terms of currency exchange, the black market refers to a place where people can trade dollars for naira outside of the official banks.

The black market rate is different from the official rate set by the Central Bank of Nigeria.

The CBN does not recognize the black market. Instead, they direct individuals who want to exchange currency to approach their respective banks.

The Current Dollar to Naira Exchange Rate in the Black Market

Now, let’s discuss the current exchange rate in the black market. The rate can change every day, so it’s crucial to stay updated. As of Thursday, 22nd June 2023, the dollar to naira exchange rate in the black market is as follows:

• Buying rate: This is the rate at which people are buying dollars in exchange for naira. The current buying rate is N765 per dollar.
• Selling rate: This is the rate at which people are selling dollars in exchange for naira. The current selling rate is N770 per dollar. These rates are sourced from the Bureau De Change (BDC), which is an establishment that buys and sells currency. If you want to change your dollars to naira, these are the rates you’ll see in the black market.

A Closer Look at the Black Market Rates

The table above provides a visual representation of the current rates. As you can see, there is a small difference between the buying and selling rates. This difference is how the people trading currency make a profit.

Naira Float: States’ External Debt Soars to $3 Trillion

After the recent decision by the Central Bank of Nigeria to allow the naira to float freely, the combined external debt of the 36 states and the Federal Capital Territory has increased to N3 trillion.

To elaborate, on June 14, 2023, the CBN instructed Deposit Money Banks to remove the exchange rate restriction on the naira at the official Investors and Exporters’ Window of the foreign exchange market. This step enabled the naira to float freely against the dollar and other global currencies.

As per data from the FMDQ Exchange, this policy change resulted in an immediate depreciation of the naira’s value. It dropped from 471 naira per dollar to 664.04 naira per dollar at the Investors & Exporters FX window.

Prior to the CBN’s alteration of the foreign exchange policy, on June 13, 2023, the total external debt of the states amounted to $4.46 billion (equivalent to 2.09 trillion naira at an exchange rate of 471 naira per dollar) as of the end of December 2022.

By Friday, the debt remained at $4.46 billion in dollar value but had grown to 2.96 trillion naira at an exchange rate of 663.04 naira per dollar. Consequently, the states will require revenue in local currency to fulfill their foreign obligations.

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