The black market, also known as the parallel market, is an unofficial currency exchange where the dollar-to-naira rate differs from the official rate set by the CBN.
Traders use the black market when access to the official forex market is limited.
What is the Current Black Market Rate for Dollar to Naira?
As of 16th January 2024, the black market exchange rate for dollar to naira is:
- Buying Rate: ₦1,270.00 per 1 USD
- Selling Rate: ₦1,280.00 per 1 USD
Rates may vary slightly across locations and dealers.
How Does the Black Market Rate Compare to CBN Official Rate?
The CBN official exchange rate for dollar to naira is ₦853.27 per 1 USD (as of 16th January 2024).
The black market rate is much higher due to dollar scarcity and naira weakness. The difference between both rates is known as the parallel market premium.
Why is the Black Market Rate Higher Than Official Rate?
Factors like dollar scarcity, currency speculation, high demand, and economic instability increase the black market rate.
The parallel market allows free currency trading unlike the official market controlled by the CBN.
Key Takeaways
- Black market dollar to naira rate today is ₦1,270 (buy) and ₦1,280 (sell) per 1 USD
- Official CBN rate is ₦853.27 per 1 USD
- Black market rates are higher due to dollar scarcity and currency arbitrage
- Traders use the parallel market when access to official forex is limited
Monitor both rates to understand the true value of the naira against the US dollar.
