Naira To Dollar Black Market Exchange Rate, 18th August 2023
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Dollar To Naira Black Market Rate, 18th August 2023
On 18th August 2023, within the vibrant setting of the Lagos Parallel Market, known widely as the “parallel” or “black market”, the exchange rates showed:
- Buying Rate: N860
- Selling Rate: N890
These numbers are pivotal for those navigating the foreign exchange maze in Nigeria, particularly when interfacing with participants in the black market.
“Forex rates in the black market frequently veer off the official path dictated by mainstream banks and financial entities.”
The variance stems from a cocktail of economic factors, including:
- Demand-supply balance
- Governmental strategies
- Global economic climate
Discerning this divergence can arm businesses and consumers with pivotal knowledge about Nigeria’s economic pulse and its potential direction.
The Official Stance: Central Bank of Nigeria (CBN) Rates
Interestingly, the Central Bank of Nigeria (CBN) has its official dollar to naira rate:
Data Validity: 18/08/2023
|Currency||Buying (in NGN)||Central (in NGN)||Selling (in NGN)|
|SOUTH AFRICAN RAND||39.096||39.1222||39.1485|
This rate paints a stark contrast with the black market figures, emphasizing the necessity for traders and investors to be well-versed with both metrics.
However, an essential nugget to remember:
“The Central Bank of Nigeria (CBN) does not validate the parallel market’s rates. For official foreign exchange pursuits, the CBN nudges entities to their banks.”
The Roots of the Rate Disparity
The chasm between the black market and the official CBN rate is no fresh news. It’s been embedded in Nigeria’s economic framework for a considerable period. The roots of this gap can be traced back to:
- Oscillations in oil prices
- The ebb and flow of foreign investments
- The suite of economic strategies rolled out by the governing bodies
“Aboki” – A Peek into the Ground-Level Forex Scene
In the Nigerian local lexicon, the term “Aboki” often represents the street-savvy forex traders. Thus, the Aboki dollar rate paints a genuine picture of the forex realm, mirroring the scenarios the average Nigerian grapples with daily.
“The Aboki rate is more than just numbers; it’s a reflection of everyday Nigerian experiences in the foreign exchange arena.”
CBN’s New Tool Helps Importers Check FX Prices
The Central Bank of Nigeria (CBN) has started a system for checking foreign exchange prices for people who want to import goods. This is done through a new online portal.
Starting from August 31, 2023, anyone who wants to import goods to Nigeria has to show a report from this portal. This is required when they fill out a form called “Form M”, which is just a way to say they plan to bring goods into the country.
The CBN has told all banks about this new rule. If someone doesn’t follow this rule, the CBN will take action.
Earlier in June 2023, the CBN made changes to how foreign exchange rates work in Nigeria. This caused the value of the local money, called the naira, to change a lot. At one point, the naira’s value dropped very low compared to the US dollar, but it got a bit better later.
The CBN is trying different things to make the naira’s value stable. Recently, Nigeria’s oil company got a big loan to help support the naira and the foreign exchange market. It’s not certain if this new portal is one of those efforts.