Check today’s Dollar to Naira Exchange rate at the black market and the CBN official rate. What is the Dollar to Naira rate today, 19th August 2022? You can convert your dollar to Naira at these rates, or you can exchange your dollar at the latest black market or parallel market rate.
Nigerians tend to convert foreign currency, especially dollars to Naira, in the black market as the exchange rate is significantly higher compared to what banks provide.
On this webpage, you can find all the details and the prevailing rate for dollar to Naira, including both the CBN and black market rates.
What is the Dollar to Naira and the official Exchange Rate Today, 19th August 2022?
Please remember that the Central Bank of Nigeria (CBN) does not recognize the parallel market (black market) and has advised individuals interested in Forex to consult their respective banks before proceeding.
The parallel exchange rate (black market rate) consistently varies from the CBN rate. The exchange rate between the US dollar and the Nigerian Naira plays a critical role in the Nigerian economy.
As the Naira depreciates, inflation takes hold of the economy, typically affecting the citizens. The Central Bank has indicated that a significant turnaround is necessary for the Nigerian economy and has encouraged Nigerians to strive toward this objective, such as boosting exports.
The black market rate for dollars is often greater than that of the Central Bank of Nigeria (CBN). The CBN Exchange rate is the rate at which you can buy or sell dollars for Naira on the CBN dollar-to-naira website, cbn.gov.ng.
The dollar to naira bank rate is the rate utilized when purchasing items from an international website using your Naira MasterCard or Debit card issued by a Nigerian bank. These rates are generally more affordable than those found on the black/parallel market.
Dollar to Naira Black Market Rate Today, 19th August 2022
| Dollar to Naira (USD to NGN) | Black Market Exchange Rate Today |
| Selling Rate | 685 |
| Buying Rate | 680 |
Factors Affecting Foreign Exchange Rates
Below are some reasons for the declining dollar to naira exchange rate.
Inflation Rates: It is widely acknowledged that inflation directly affects black market exchange rates. If the Nigerian economy stabilizes and inflation is controlled, the Naira will see positive changes; however, if the Naira continues to decline, it may suggest that food and other essential items are becoming more costly daily.
Interest Rates: Another aspect to monitor is interest rates. If the lending interest rate for banks increases, it would negatively affect the economy, leading to a contraction and subsequently causing the value of the Naira to drop.
Government Debt: National debt can influence investor confidence and, consequently, the influx of capital into the economy. If the inflows are substantial, the Naira exchange rate will appreciate in favor of the Naira.
Speculators: Speculators often exert influence on the naira-to-dollar exchange rate. They hoard currency in anticipation of a profit, resulting in the naira dropping even further.
Trade Conditions: Favorable trade conditions will contribute to an increase in the value of the naira against the dollar, although Nigeria is currently experiencing a trade deficit, with most goods coming from China, India, and other Asian countries.
