Dollar to Naira Black Market Rates on 7th July 2023 » Voice of Nigeria
Dollar to Naira Exchange Rate: Black Market Snapshot on 7th July 2023
Key Points:
- Current exchange rates for USD to NGN on the black market and the CBN (Central Bank of Nigeria).
- Factors that affect the USD/NGN exchange rate fluctuations.
- Importance of staying informed about the foreign exchange rates.
Today’s Exchange Rate on the Black Market
As of 7th July 2023, the black market, often referred to as the Aboki exchange, records the exchange rate between the Dollar and Naira. Currency dealers from Abuja Zone 4 market, Lagos, Nigeria confirmed that the dollar was bought at the rate of ₦770 and sold at the rate of ₦775 today.
The USD to NGN Exchange Rates
- Buying Rate: 770 NGN
- Selling Rate: 775 NGN
The local currency (AbokiFx) began the day at ₦770 per $1 at the parallel market, also known as the black market. As the day ended in Lagos Nigeria, the closing rate was ₦775 per $1.
Note: Exchange rates shift on an hourly basis due to the ever-changing supply and demand of dollars. Hence, the price you bought or sold 1 dollar at 770 could change (increase or decrease) within hours.
Official CBN Exchange Rate for Dollar to Naira
The Central Bank of Nigeria (CBN) also publishes the exchange rate. As of today, the rates are:
- Buying Rate: 765 NGN
- Selling Rate: 767 NGN
Disclaimer: The source for the official NAFEX rates is obtained from the FMDQOTC. The rates aren’t determined by VoiceofNigeria or this article.
Factors Influencing the Foreign Exchange Rate
Several factors influence the current state of the USD/NGN exchange rate. They include:
1. Inflation Rates
Inflation impacts the black market exchange rates directly. When the Nigerian economy is stabilized and inflation is kept in check, it benefits the Naira. However, if the Naira keeps dropping, it signifies the increasing daily cost of food and other necessities.
2. Interest Rates
Interest rates are crucial too. If the rates at which banks lend money rise, it could harm the economy, causing it to shrink and consequently lowering the value of the Naira.
3. Government Debt
National debt can also influence investor confidence, thereby affecting the amount of money flowing into the economy. If inflows are high, it favors the Naira’s exchange rate.
4. Speculators
Speculators can frequently influence the Naira-to-dollar exchange rate. They hoard money anticipating a gain, which can further depreciate the Naira.
5. Trade Conditions
Favorable trade conditions can raise the Naira’s value against the dollar. However, Nigeria is currently grappling with a trade deficit. Much of what the nation consumes comes from countries like China, India, and other Asian nations.
It’s essential to stay informed about the foreign exchange rates. Whether you are a businessperson dealing in international trade, an investor considering foreign investment, or a traveler preparing for a trip abroad, staying updated with current exchange rates will help you make better financial decisions.
