How Much is Dollar to Naira Exchange Rate in Black Market Today? Find Out!
To know the exchange rate of dollar to naira is very paramount due to the recent devaluation of Naira. In this Post we’ll be highlighting the current value of 1 USD when converted to Nigerian Naira in black market and in parallel market. Also, you will see the reason why the value of naira has been dwindling and the possibly what to make it appreciate. I will suggest you bookmark this page as it will be updated daily to ensure that you always have the correct and current exchange rate of Nigerian currency to US Dollars ($). Stay Tuned!
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The current conversion or exchange rate of dollar to naira in parallel and black market can been seen Below.
Disclaimer: Please note that the rates given above might be slightly different from what you might use in actual trades.
Reasons for Naira to Dollar Depreciation
The infrastructure on ground doesn’t support the production and manufacture of goods in Nigeria. Bad transportation networks and facilities, inadequate power supply coupled with an unfavourable climate to run businesses make it hard for goods to be produced in Nigeria. As a result Nigerians turn to other countries to get stuff that aren’t easily available in the country. This includes products like rice, toothpick, turkey and other goods that can be produced locally.
Due to the unbalance of import to exported goods, the demand for dollar is always on the rise, which generally causes a continued depreciation of the naira. Depreciation is steadfast at the parallel market and the gap between naira’s value at the parallel and official market widens easily due to this imbalance. To checkmate this, the CBN has devalued the currency a number of times, only for the same thing to happen years later. This trend has continued since the 90’s and here are 5 reasons why it will continue, until something effective is done.
Unwholesome practices of middlemen
There’s a lot of round tripping going on at the Nigerian forex market. People buy dollars at the official market and sell at an inflated price on the parallel market. This has caused the gap between the official market and the parallel market to keep widening, resulting in the weakness of the naira. The CBN has put some measures in place to checkmate this but the results so far haven’t been encouraging.
Persistent negative predictions and projections by Naysayers
Nigeria is known and associated with many bad things globally. Foreign and local media most times have a negative projection about the country’s economy. Things are most of the times, projected to get worse and negative predictions about the naira abound as well. This scares investors and most of them won’t want to put their money into the Nigerian economy when they should, causing a shortage of dollars in the foreign exchange market. Dollar scarcity in turn causes the naira’s value to fall.
Made Abroad Mentality of Nigerians
It goes without saying that a lot of Nigerians prefer imported goods to those made locally. We prefer to buy things made in foreign lands, which can easily be produced locally. It’s generally assumed that made-in-Nigeria goods are fake and of substandard quality. Until Nigeria starts producing standard goods and Nigerians have a different mentality, the demand for dollars will always be on the high and the naira will keep depreciating. Check Here for more.
That it on the dollar to naira exchange rate in parallel market and in black market in July, 2020. You can use the comment section to air you view and also the share button to share this post. Remember to bookmark this page as the dollar to naira conversion rate will be updated regularly, due to the fluctuation in naira exchange.