How Much Is Dollar To Naira Today In Black Market 2024
The U.S. Dollar is continually increasing daily, which is very alarming to the masses and beneficial to other individuals who deem it attractive due to personal reasons.
This article will highlight all information regarding the dollar, its conversion into Naira today, the conversation rate according to different banks in Nigeria, and several other information.
On this page, you can discover all the facts and the current rate for dollar to Naira, both the CBN and the black market rate.
Now, if you wish to know how much a dollar is to Naira today, then go through this article and find the latest authentic information concerning the dollar rate today!!!
Contents
Dollar To Naira Bank Rate Today
Please keep in mind that the Central Bank of Nigeria (CBN) does not recognize the parallel market (black market) and has recommended individuals interested in Forex contact their respective banks before proceeding.
The parallel exchange rate (black market rate) is always different from the CBN rate. The exchange rate between the US dollar and the Nigerian Naira significantly impacts the Nigerian economy.
As the Naira falls in value, inflation takes over the economy, which usually impacts the inhabitants. The Central Bank has stated that the Nigerian economy needs a significant turnaround and has asked Nigerians to work toward this goal, such as increasing exports.
The black market rate for dollars is frequently higher than the Central Bank of Nigeria (CBN). The CBN Exchange rate is the rate at which you can purchase or sell dollars for Naira on the CBN dollar-to-naira website, cbn.gov.ng.
The different Bank rates include the following;
- First bank dollar rate for $1 – 500
- Wema bank dollar rate for $1 – 461
- Access bank dollar rate for $1 – 505
- Stanbic bank dollar rate for $1 – 475
- Zenith bank dollar rate for $1 – 480
- GTbank dollar rate for $1 – 416
- UBA bank dollar rate for $1- 503
How Much Is A Dollar To Naira Today In The Black Market
Exchange rate at the black markets today, 28th July 2024? – See today’s Dollar to Naira exchange rate. You convert your dollar to Naira at these rates, or you convert your dollar to Naira at the most recent black market or parallel market rate.
Nigerians prefer to exchange foreign currency, particularly dollars to Naira, on the black market since the conversion rate is much higher than what the bank offers.
The naira has crashed further in the parallel market, trading for N710 against the U.S. dollar on the exchange platform from Aboki.
The national currency, which traded for N670 against the dollar on Monday, has fallen even further by 6.7 percent in two days as of Friday afternoon, according to data from Aboki Forex.
Today’s record fall comes a year after the Central Bank of Nigeria (CBN) prohibited the sale of foreign currency to bureau de change operators.
The apex bank had previously prohibited the sale of foreign exchange to BDC operators due to their unauthorized sales of foreign exchange above the market they were authorized to serve.
In the black market, dollar The exchange rate between the naira and the US dollar has fallen beyond the N700/$1 threshold at the parallel market on Wednesday, 27th of July 2024, despite starting the day at N675/$1. This is according to information from Bureau De Change operators in Lagos State.
When CBN Governor Godwin Emefiele banned the sale of forex to BDC, the exchange rate was around N501 to a dollar. However, a year after the ban, the value of the naira plummeted to N670 to a dollar.
In an attempt to further restrict the flow of forex at the parallel market, the apex bank threatened to arrest and prosecute Nigerians using naira to buy dollars last week.
For those taking money from banks to buy dollars, it is illegal to do so. If the security agencies hold you, you will know the implication of that,” Mr. Emefiele said at a Monetary Policy Committee (MPC) meeting in Lagos.
However, Mr. Emefiele has been criticized for failing to initiate policies that will help stabilize the country’s currency value in the forex market.
In the parallel market, the Naira weakened from N180 to a dollar in 2014 to N710 on Wednesday.
As at 28/07/2024, Dollar has been confirmed to have risen up again to 710 again in the black market, and this has raised a lot of concern.
Dollar Conversion Table
Dollar |
Naira |
$1 |
₦415.64 |
$2 |
₦831.27 |
$5 |
₦2,078.19 |
$10 |
₦4,156.35 |
$12 |
₦4,987.66 |
$15 |
₦6,234.50 |
$20 |
₦8,312.66 |
$30 |
₦12,469.00 |
$40 |
₦16,618.41 |
$50 |
₦20,773.02 |
$60 |
₦24,927.2 |
$70 |
₦29,081.73 |
$80 |
₦33,236.26 |
$90 |
₦37,390.79 |
$100 |
₦41,546.43 |
$120 |
₦49,855.71 |
$150 |
₦62,319.64 |
$200 |
₦83,091.43 |
$250 |
₦103,864.30 |
$300 |
₦124,637.16 |
$400 |
₦166,182.87 |
$500 |
₦207,720.83 |
Effect Of Dollar Increment In The Nigerian Economy
Due to the US Fed’s hawkish approach, a higher dollar may spell bad news for the Naira, as it is likely to push above N600/$.
If Nigeria’s exports do not improve, the country’s currency may suffer a double blow as demand for risky assets declines. However, current data indicate that Nigeria has experienced a historic trade deficit.
Nigeria’s international trade deficit for 2021 has reached a new high of N1.94 trillion. Nigeria’s exports climbed by 51% to N18.91 trillion in 2021, up from N12.52 trillion the year before.
The increase in export revenues, however, was not enough to offset a 64.1% increase in import expenses, which totaled N20.84 trillion.
If the naira continues to grow weaker against the US dollar, it means that Nigeria will have to spend more on import bills, considering we still depend primarily on importation even to meet up domestic agricultural demands, amongst other things, logically causing an uptick in inflationary pressure in the country.
This will also have a ripple effect on Nigeria’s balance of payment, which only managed to print a positive net balance in 2021. Also, the aggressive move by the US fed to raise interest rates means that interest paid on Nigeria’s external loans will rise.
Already, the federal government is spending as high as 96% of its retained revenue on debt servicing; this could surge significantly in 2024, which would open the government to more borrowings and hinder its ability to fund capital projects.”
Factors Affecting Dollar Rise In Nigeria.
The dollar currency’s exchange rate is typically determined by the strength or weakness of the underlying Nigerian economy. As such, a currency’s value can fluctuate from one moment to the next.
There are many factors contributing to real exchange rate volatility. Among these factors are: the level of output, inflation, the openness of an economy, interest rates, domestic and foreign money supply, the exchange rate regime, and central bank independence (Stancik, 2007).
1. Inflation
A devalued currency can result in “imported” inflation for countries that are substantial importers. A sudden 20% decline in the domestic currency could result in imports costing 25% more, as a 20% decline means a 25% increase is needed to return to the original price point.
It is well known that inflation directly impacts black market exchange rates. If the Nigerian economy can be stabilized and inflation is controlled, the naira will benefit; however, if the naira continues to fall, it may indicate that food and other necessities are becoming more expensive daily.
| Nigeria Inflation Rate – Historical Data | ||
| Year | Inflation Rate (%) | Annual Change |
| 2021 | 16.95% | 3.71% |
| 2020 | 13.25% | 1.85% |
| 2019 | 11.40% | -0.70% |
| 2018 | 12.09% | -4.43% |
| 2017 | 16.52% | 0.85% |
| 2016 | 15.68% | 6.67% |
| 2015 | 9.01% | 0.95% |
| 2014 | 8.06% | -0.41% |
| 2013 | 8.48% | -3.74% |
| 2012 | 12.22% | 1.38% |
| 2011 | 10.84% | -2.88% |
| 2010 | 13.72% | 1.17% |
| 2009 | 12.56% | 0.97% |
| 2008 | 11.58% | 6.19% |
| 2007 | 5.39% | -2.84% |
| 2006 | 8.23% | -9.64% |
| 2005 | 17.86% | 2.87% |
| 2004 | 15.00% | 0.97% |
| 2003 | 14.03% | 1.16% |
| 2002 | 12.88% | -6.00% |
| 2001 | 18.87% | 11.94% |
| 2000 | 6.93% | 0.31% |
| 1999 | 6.62% | -3.38% |
| 1998 | 10.00% | 1.47% |
| 1997 | 8.53% | -20.74% |
| 1996 | 29.27% | -43.57% |
| 1995 | 72.84% | 15.80% |
| 1994 | 57.03% | -0.13% |
| 1993 | 57.17% | 12.58% |
| 1992 | 44.59% | 31.58% |
| 1991 | 13.01% | 5.64% |
| 1990 | 7.36% | -43.10% |
| 1989 | 50.47% | -4.04% |
| 1988 | 54.51% | 43.22% |
| 1987 | 11.29% | 5.57% |
| 1986 | 5.72% | -1.72% |
| 1985 | 7.44% | -10.39% |
| 1984 | 17.82% | -5.39% |
| 1983 | 23.21% | 15.51% |
| 1982 | 7.70% | -13.12% |
| 1981 | 20.81% | 10.84% |
| 1980 | 9.97% | -1.74% |
| 1979 | 11.71% | -10.00% |
| 1978 | 21.71% | 6.62% |
| 1977 | 15.09% | -9.21% |
| 1976 | 24.30% | -9.66% |
| 1975 | 33.96% | 21.29% |
| 1974 | 12.67% | 7.27% |
| 1973 | 5.40% | 1.95% |
| 1972 | 3.46% | -12.54% |
| 1971 | 16.00% | 2.24% |
| 1970 | 13.76% | 3.60% |
| 1969 | 10.16% | 10.63% |
| 1968 | -0.48% | 3.25% |
| 1967 | -3.73% | -13.42% |
| 1966 | 9.69% | 5.59% |
| 1965 | 4.10% | 3.25% |
| 1964 | 0.86% | 3.55% |
| 1963 | -2.69% | -7.96% |
| 1962 | 5.27% | -1.01% |
| 1961 | 6.28% | 0.83% |
| 1960 | 5.44% | 0.83% |
2. Government Debt
Another outcome of the surging dollar strength is that emerging markets economies will need to pay a higher rate of interest to attract folks to buy dollar-denominated bonds issued by EM sovereigns and corporates.
This is particularly concerning because an anticipated fall of the local currency due to a reversal of capital flows could make servicing the dollar loan more difficult. Corporations and institutions that borrow in dollars may be put under extra strain if their earnings do not rise in lockstep.
Nigeria’s external debt has increased by $5.04 billion to $38.39 billion as at Q3 2021. Multilateral institutions account for 48.6% of the country’s foreign debt, with $3.46 billion payable to the International Monetary Fund (IMF), $11.97 billion owed to the World Bank’s Internal Development Association, and $1.55 billion owed to the African Development Bank, among other sources.
3. Interest Rate
As mentioned earlier, exchange rates are a key consideration for most central banks when setting monetary policy. If the interest rate at which banks lend money rises, it would harm the economy, causing it to contract and, as a result, the value of the naira to fall.
Value of $1 from 2014 to 2024
$1 in 2014 is equivalent in purchasing power to about $1.25 today, an increase of $0.25 over 8 years. The dollar had an average inflation rate of 2.85% per year between 2014 and today, producing a cumulative price increase of 25.17%.
This means that today’s prices are 1.25 times higher than average prices since 2014, according to the Bureau of Labor Statistics consumer price index. A dollar today only buys 80.000% of what it could buy back then.
The inflation rate in 2014 was 1.62%. The current inflation rate compared to last year is now 9.06%. If this number holds, $1 today will be equivalent in buying power to $1.09 next year.
Lagos Parallel Market Rate
Lagos Parallel Market Rates July 28, 2024 (Black Market): dollar to naira exchange rate today black market
July 28 dollar to naira black market exchange rate: 1 dollar to naira = ₦630
Lagos parallel market (black market dollar exchange rate today)
The local currency opened at N630.00 per $1 at the parallel market, otherwise known as the black market today, Friday, 28 July 2024, in Lagos, Nigeria, after it closed at N630.00 per $1 on Thursday, 28 July 2024.
Even though the dollar to naira opened in the parallel market at ₦630 per $1 today, NewEdge reports that the Central Bank of Nigeria (CBN) does not recognize the parallel market, otherwise known as the black market.
The apex bank has therefore directed anyone who requires forex to approach their bank, insisting that the I&E window is the only known exchange.
NewsEdge Nigeria reports that on the black market, the players buy a dollar for N625 and sell for N630 on Friday morning, July 28, 2024, after they bought N625 and sold for N630 on Thursday, 28 July 2024.
How Can Naira Regain Its Value
Since the Central Bank of Nigeria (CBN) rolled out some FX policies, the naira has lost more than it gained in Nigeria’s history. At the time of this update, being Thursday, July 28, 2024, the exchange rate was NGN710/$ for buy and NGN730/USD for sell.
In the 1970s, the Naira was more valuable than the US dollar. Today, the reverse is the case, It has gone bad that one US dollar can buy as much as NGN710 Naira or more at the parallel market as CBN halts the sales of forex to Bureau De Change operators in Nigeria, thereby creating scarcity.
The number one way of increasing the value of the Naira is to expand exports. At the moment, Nigeria gets most of its FX from the sale of oil.
One of the ways to increase the value of the Naira is to ease the pressure on the foreign exchange market in order to meet the high demand for hard currency in the country; the World Bank offered a similar suggestion a few weeks ago.
The CBN, which is the official monetary advisor of Nigeria’s government, should encourage the Federal Government to toe the steps of China and buy US government bonds. For instance, the record shows China has over $1 trillion in US government bonds.
Conclusion
The prices of food items and other commodities in Nigeria today have skyrocketed due to the insecurity in the country, border closures, and the impact of the Covid-19 pandemic. Inflation in the country has also been on the rise.
With the current situation, an average Nigerian who earns in Naira will find it hard to survive on what he has. Looking at the way things are moving, things aren’t even ready to take a U-turn rather, life keeps getting worse, and average businesses keep closing down.
The U.S dollar is substantially higher than the Naira. As of the time of writing this piece, $1 equates to 415 Naira. This rate is the official CBN (Central Bank of Nigeria) rate. In Black Market, 1 USD is been converted at N710.