Dollar to Naira Black Market Rate Today, 2 September 2023

Dollar To Naira Black Market Exchange Rate Tuesday, 2 September 2023

 

Dollar to Naira 2 September 2023 Black Market Rate

On 2nd September 2023, Bureau De Change (BDC) sources confirmed that the current exchange rate for dollar to naira at the Lagos Parallel Market, also known as the Black Market, is set at N910 for buying and N917 for selling. 

Dollars to Naira Black Market 2 September 2023 – Handy Conversion Data Table

Naira to Dollar Black Market 2 September 2023 – Handy Conversion Data Table

Dollar to Naira Rates News 2/09/2023

Market Resistance Emerges as Naira Holds Steady at N920/$ for Three Days

In recent days, the Nigerian Naira (NGN) has held its ground at N920 to the US Dollar (USD) in the parallel market, marking a significant development in the nation’s financial landscape. This three-day streak of stability suggests that market resistance is gaining momentum.

Stagnant Exchange Rates

An examination of exchange rate movement charts reveals that the Naira has consistently been valued at N920 to the USD on Tuesday, Wednesday, and Thursday, maintaining an unwavering rate. This apparent stagnation in the midst of a highly volatile market reflects a standoff between forex end buyers and sellers.

Market analysts interpret this uniform rate as a clear signal that buyers are reluctant to pay higher rates, while sellers are unwilling to offer their currency at lower rates. This impasse has generated a state of uncertainty in the forex market.

Discrepancy Between Markets

Contrasting the parallel market, the Investor and Exporter (I&E) Window presents a different picture. Here, the Naira closed at N762/$, creating a staggering N158/$ premium when compared to the official parallel market rates.

Garuba Sarki, a Bureaux De Change (BDC) trader located in Marina, central Lagos, sheds light on the situation. He believes that forex speculators have struggled to push rates above the current N920/$ mark.

Sarki states, “I think the rate has reached a resistance level in the market. No one wants to pay more than N920/$, and no one wants to sell below that rate. The current market turmoil can be attributed to the inadequate or non-existent supply of dollars and an increase in demand from multiple buyers.”

Dollar Liquidity Woes

Sarki highlights a critical issue: the shortage of dollar liquidity. With banks reluctant to sell dollars and BDCs facing incapacitation, the question arises – where will the much-needed dollar liquidity come from? Sarki, like many others, anticipates prompt action from the Central Bank of Nigeria (CBN) to rectify the situation and restore stability to the market.

Seasonal Pressures

Sarki also points out that the forex market is grappling with additional pressures. Many companies are seeking dollars to import goods for the upcoming Christmas sales season, while others are preparing for summer holidays. These factors are further exacerbating the challenges faced by the market.

Calls for Action

Dr. Uju Ogubunka, the former Registrar of the Chartered Institute of Bankers of Nigeria (CIBN), emphasizes the urgent need for the country’s economic managers to address the Naira-USD relationship and promote exchange rate stability. He directs his advice towards the Acting CBN Governor, Folashodun Shonubi, urging him to confront the forex market’s volatility.

Ogubunka states, “It is not a complex task. The Naira-USD relationship is at its worst state. Let’s, at the very least, return to a point of relative stability and build from there. Creating jobs and bolstering foreign reserves, which are closely tied to exchange rates, should be a priority. Additionally, efforts to enhance exports and reduce imports are crucial.”

Tackling Financial Manipulation

Dr. Aminu Gwadabe, the President of the Association of Bureaux De Change Operators of Nigeria (ABCON), calls upon the Federal Government to enhance financial intelligence efforts. He believes that tracking individuals with the proceeds of corruption is essential to cleanse the market.

Gwadabe asserts, “The Naira is depreciating not solely due to the forces of supply and demand but because of the collective actions and influence of individuals with illicit funds.”

Recent Currency Reforms

In June, the Central Bank of Nigeria (CBN) initiated currency reforms aimed at unifying exchange rates and eliminating multiple exchange rates. While this endeavor led to a 40% reduction in the official Naira exchange rate, the challenge of insufficient dollar supply has persisted, preventing convergence between official and parallel market rates.