![]() ![]() Having a formal system for exchange gives users the feeling of safety for exchange and with relaxed rules and regulations, users feel liberated from too much process and will stick to using the formal banking system.įurthermore, the Nigerian government can also do the following activities to literate people and bring them awareness: Relaxation on the rules and regulations.Increase the liquidity of the USD to NGN and also enhance the market efficiency with more liquidity, the business and individuals might be able to carry out large transactions without much to worry.Following are the few steps that can be taken by the Nigerian government to strengthen the foreign exchange system: To overcome these issues, the Nigerian government should work towards reforming its rules and regulations for foreign exchange transactions. Also, as there is nobody to look out for those transactions, it acts as a fearless medium to carry out illicit activities. All the money that is exchanged through the black market does not generate revenue for the country’s government. Now that we have already understood what is the impact of the black market exchange rates on the USD to NGN transactions on the economy of Nigeria and how that is caused, let us understand what solutions can be applied and the implications of the said solutions.īlack Market is an unregulated and unofficial exchange system that is an unguarded backdoor to the country’s economy. Which weakens the country’s overall economy and causes great distraught. The weakening of the Nigerian economy may lead to price inflation, affect the purchasing power, and creates a great disparity among the other foreign currencies as well. This scenario creates the weakening of the Nigerian Naira compared to the US Dollars, as more NGN is exchanged for the price of one dollar. The black market exchange rates for USD to NGN are almost two times as compared to that in the official Nigerian Foreign Exchange system. However, the currency exchange rates have a huge difference between the normal banking system and the black market exchange, leading to instability in the economy and creating disruption. Also, illicit activities are carried out using foreign currency which further increases the need to rely on the black market exchange.ĭue to all the above states reasons the black market exchange is often used by people as a medium for currency exchange. The black market exchange for USD to NGN is thriving for years now and continues to provide an alternative most used platform for exchange due to the difference in supply and demand through the formal banking system. Due to these limitations and restrictions imposed on the exchange of USD to NGN through the formal banking system businesses and individuals are tempted to resort to the black market exchange for USD to NGN. But there are certain restrictions and regulations imposed on the exchange process which limit the business and individuals. The United States Dollar to the Nigerian Naira exchange plays a significant role in forming the economy of the Nigerian country. Therefore, the need for USD to Naira and Naira to USD transactions persists in the international market. The main revenue-generating source for Nigeria is the crude oil business, this business in the international markets is usually done through USD as the currency. The Nigerian economy is highly dependent on imported goods and foreign business. The Nigerian Naira (NGN) is the national currency of Nigeria. ![]() United States Dollar (USD) is a global currency and most foreign exchange transactions and international business take place through the United States Dollar (USD). Exchange Rate Of Dollar To Naira in Black Market Today? Dollar to Naira (USD to NGN) Dollar To Naira Black Market Exchange Rate Today (Aboki Dollar Rate)Īs of the time of presenting this report, the exchange rate for a dollar to naira in the varied vicinity of Lagos and Onitsha Parallel Market (Black Market) is N754 to N757. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |