Black Market Exchange Rate Of Dollar To Naira Today, 8th October 2021 can be found below.
Newsonline has obtained the official dollar to the naira exchange rate in Nigeria today, including the Bureau De Change (BDC) rate and CBN rates.
BREAKING: Naira Recovers Significantly Amid Low US Dollar Demand
What Is The Official Exchange Rate For Dollar To Naira Today?
The exchange rate between the Naira and the US dollar according to the data released on the FMDQ Security Exchange the official forex trading portal showed that the Naira opened at ₦414.44 per dollar on Friday, 08 October 2021, after it closed at ₦414.67 per $1 on Thursday, 07 October 2021.
Exchange Rate of Dollar To Naira in The Parallel Market
Even though the dollar opened in the parallel market for ₦577 per $1 today, the CBN does not recognise the parallel market, otherwise known as the black market. The apex bank has therefore directed anyone who requires forex to approach their bank, insisting that the I&E window is the only known exchange.
Newsonlinereports that Nigeria’s official currency, the naira on Thursday appreciated on the black market, trading at N570 to the dollar. The local currency was stronger than N575 to dollar, it closed last week.
The naira exchanged at N410.81/$ at the Investors and Exporters (I&E) forex window, now the official market rate.
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The gradual rebound of the naira followed drop in dollar demand at the parallel market where majority of Nigerians previously sourced the greenback.
In emailed note to investors, Forex Trading Desk Manager, AZA Finance, a global forex dealer, Murega Mungai, said the slight rebound of the naira followed a fall in demand for the greenback on the parallel market, with the CBN’s 30-day moving average Forex reserves increasing by 3.6 per cent over the past week to $37.6 billion.
“This week, Nigerian President Muhammadu Buhari sought approval from the National Assembly to raise the 2022 budget by N2.47 trillion to N16.45 trillion, reflecting new fiscal terms in the recently passed Petroleum Industry Act and other critical expenditures in the 2022 budget. We expect the more positive environment for the Naira to continue in the coming week,” Mungai said.
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With dollar teller points in banks’ branches now operational , as well as increased dollar supply by the Central Bank of Nigeria (CBN), many forex end-users are gradually abandoning the parallel market for the official selling points.
The CBN recently raised weekly dollar allocation to Deposit Money Banks (DMBs) by 200 per cent to boost dollar liquidity and save the naira from consistent depreciation.
DMBs now get over $400 million weekly allocation to meet legitimate dollar demands.
At the banks’ branches, dollar was selling at an official rate of N412 and that each traveller was entitled to buy $4,000 per quarter for personal travels and $5,000 per quarter for business travels.
Managing Director, Financial Derivatives Company Limited, Bismarck Rewane, said more dollar allocation is needed to get the naira back to position of strength.
For him, the necessary and sufficient condition for naira stability at the parallel market is a significant increase in forex supply at the official window rather than administrative solutions.
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Rewane explained that a major determinant of the naira value is the balance of trade and current account. “The terms of trade improving and balance of trade deficit reducing but the naira is still languishing and plunging,” he stated.
Meanwhile, Newsonline Nigeria reports that the USD started this week at ₦578 in Parallel Market also known as Black Market on Monday, October 4, 2021 in Lagos Nigeria.
