Dollar to Naira Black Market Rate Today, 31 August 2023

Dollar To Naira Black Market Exchange Rate Tuesday, 31 August 2023

 

Dollar to Naira 31 August 2023 Black Market Rate

On 31st 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 N915 for buying and N920 for selling. 

Dollars to Naira Black Market 31st August 2023 – Handy Conversion Data Table

Naira to Dollar Black Market 31st August 2023 – Handy Conversion Data Table

Dollar to Naira Rates News 31/08/2023

CBN’s Crackdown on BDC Operators Imminent as Disparity Between Black Market and Official Market Widens

In response to the widening gap between the black market and official market exchange rates, the Central Bank of Nigeria (CBN) is poised to take action against Bureau de Change (BDC) operators. The deadline set by the CBN for these operators is fast approaching, ending on August 31, 2023. The CBN attributes the depreciation of the naira to over N900 to a dollar in the black market to the actions of these operators.

Recent developments indicate a potential conflict brewing between the Central Bank of Nigeria and Bureau De Change operators, driven by alleged market misconduct.

Reports suggest ongoing discussions between the apex bank and the members of the Association of Bureau de Change of Nigeria (ABCON), with regards to unmet expectations and grievances.

The CBN has issued a warning of possible revocation of licenses for up to 5,000 BDCs due to violations of regulations. The bank has both publicly and privately engaged with BDC operators, accusing them of market manipulation and actions detrimental to the economy.

The operators, on the other hand, refute these allegations and contend that the CBN’s assessment is misguided. Despite the CBN attributing the depreciation of the naira to over 5,000 registered BDC operators, ABCON consistently rejects this narrative, urging the CBN to take stronger measures to restore stability to the financial system.

On August 29, 2023, Aminu Gwadabe, the president of ABCON, highlighted concerns over the CBN’s inability to distinguish between speculators and legitimate registered members of ABCON. The issue is anticipated to come to a head on August 31, 2023, following the CBN’s deadline for ABCON to implement its recently issued operational guidelines.

The CBN recently introduced updated guidelines aimed at enhancing efficiency within the Nigerian Forex market. These guidelines include reporting and trading rules intended to restore order to the market.

A key provision of the circular is the stipulation that BDC operators’ trading margins must fall within a range of -2.5% to +2.5% of the previous day’s weighted average exchange rate in the Nigerian Foreign Exchange Market window. The circular also warns of license revocation for BDC operators failing to comply with the newly issued directives.

According to a report by The Guardian, a substantial 19% discrepancy exists between the exchange rates in the black market and the official foreign exchange market. As of August 30, 2023, data from FMDQ indicates that the naira was trading at N920 in the black market and N775.34 in the official market. Analysts express concerns that these developments contradict the foreign exchange reform efforts of President Bola Tinubu’s administration. If the CBN does not take assertive action soon, experts predict that the naira could plummet to as low as N1,000.