Dollar to Naira Black Market Rate News Today

Dollar To Naira Black Market Exchange Rate 

The rate below shows the current Dollar to Naira Price on 26/08/2023 in the Black Market. Keep in mind, this rate can change hourly depending on the dollar availability in the market.

Check Dollar to Naira Black Market 29 August 2023

 

 Dollar to Naira 26 August 2023 Black Market Rate

On 26nd August 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 N907 for buying and N915 for selling. 

Dollars to Naira Black Market 26 August 2023 – Handy Conversion Data Table

Naira to Dollar Black Market 26 August 2023 – Handy Conversion Data Table

Dollar to Naira Black Market News 26/08/2023

Naira’s Exchange Rate Declines to 905/$ due to Renewed Pressure in Parallel Market

The naira’s decline continued on Thursday, reaching an exchange rate of 905 to a dollar in the parallel segment of the foreign exchange market.

This drop in the local currency against the dollar is attributed to renewed demand pressure, despite the Central Bank of Nigeria (CBN) announcing an operational mechanism for Bureau De Change (BDC) operations.

According to AbokiFX, an online platform tracking exchange rates, FX dealers in the parallel market were buying dollars at N895 and selling at N905. Previously, the naira had remained steady at 900/$ in the parallel market, while it fell to N773.42/$ at the Investors & Exporters window.

Vetiva analysts based in Lagos noted, “Investors remain bearish, especially in the mid-long ends of the bond market, due to rising uncertainties about the country’s FX situation and the recent pause in fiscal reform direction.” They added that the temporary relief the naira experienced following the announcement of the $3 billion Afreximbank loan seems to be fading.

The CBN recently stated that the buying and selling spread for BDC operators should be within a range of -2.5 percent to +2.5 percent of the foreign exchange market window’s weighted average rate from the previous day.

A market analyst suggested that a significant policy shift is needed for BDC operators beyond the given price margin mandate. The analyst pointed out that there has been an excessive issuance of BDC licenses over the past years, leading to a distorted market. They recommended that BDCs could be integrated as agents of banks to improve coordination and enhance monitoring.

Additionally, the CBN required BDCs to submit mandatory periodic reports through the Financial Institution Foreign Rendition System, with sanctions for non-compliance, including license withdrawal.

Another analyst proposed integrating BDCs into the formal market by allowing them to bid for FX at the official market through banks, with a condition to sell within 48 hours or return it. This move could improve coordination, eliminate speculators, and enhance the role of BDCs in the financial system.

United Capital analysts from Lagos noted that despite the anticipated pressure on the naira in all market segments due to weak dollar earnings, they expect the naira’s appreciation to continue as the CBN implements its recent FX policies