Dollar To Naira Exchange Rate For Today 05 July 2023

Naira

Dollar to Naira exchange rate for today, Wednesday 05 July 2023 has been obtained by this reporter.

Newsonline Nigeria has obtained the official dollar to the naira exchange rate in Nigeria today, including the Bureau De Change (BDC) rate and CBN rates.

This Nigeria News Platform understands that on Tuesday, the dollar costs more in the black market than in the official market, according to aggregators of both foreign exchange channels.

In the Bureau De Change window of the black market, the dollar was offered for sale at an average price of N769.6/$1, above the N770.2/$1 rate on Monday.

This showed the naira appreciated slightly by 0.07 per cent in the parallel market, as the cost of the American greenback dropped by N0.6 kobo, according to Naira Rates, the black market aggregator. 

But in the official market, FMDQ Exchange revealed that foreign exchange traders transacted the United States Dollar (USD) at N768.44/$1.

The authorised dealers increased the price of the dollar by N26.94 kobo from  N741.50/$1, with the naira in the hands of buyers depreciating in value by 3.63 per cent. 

According to the official market aggregator, the highest and lowest rates of the day are N820/$1 and N700/$1 respectively. 

Furthermore, the total foreign exchange transactions recorded during the day was $73.86 million, as supply fell below $100 million for two consecutive days. 

The foreign exchange transactions fell short of the $88.68 million reported during the previous day, indicating a $14.82 million or 16.7 per cent drop. 

Meanwhile, in the black market, the naira to pound exchange rate was N992.5/£1, as the British currency was more expensive than it was the day before when it was sold at an average rate of N991.5/£1. 

The euro was sold at an average rate of N852.5//€1 in the parallel market, against the N851.3/€1 rate the European currency was offered on Monday.

Black market dollar to naira today

How Much is Dollar to Naira official CBN rate

Below you can see the chart for the Nigerian Naira rate today compared to the Dollar.

Please keep in mind that the Central Bank of Nigeria (CBN) does not recognize the parallel market (black market) and has recommended individuals interested in Forex contact their respective banks before proceeding.

The parallel exchange rate (black market rate) is always different from the CBN rate. The exchange rate between the US dollar and the Nigerian Naira significantly impacts the Nigerian economy.

As the Naira falls in value, inflation takes over the economy, which usually impacts the inhabitants. The Central Bank has stated that the Nigerian economy needs a significant turnaround and has asked Nigerians to work toward this goal, such as increasing exports.

The black market rate for dollars is frequently higher than the Central Bank of Nigeria (CBN). The CBN Exchange rate is the rate at which you can purchase or sell dollars for Naira on the CBN dollar-to-naira website, cbn.gov.ng.

Newsonline Nigeria reports that the dollar to naira bank rate is the rate you use when you buy something from a foreign website with your Naira MasterCard or Debit card from a Nigerian bank. These rates are almost always cheaper than those available on the black/parallel market.

Dollar to Naira CBN rates today

Factors Influencing Foreign Exchange Rates

Here are some causes of the dwindling dollar to naira exchange rate.

Inflation Rates: It is well known that inflation directly impacts black market exchange rates. If the Nigerian economy can be stabilized and inflation is brought under control, the naira will benefit; however, if the naira continues to fall, it may indicate that food and other necessities are becoming more expensive daily.

Interest Rates: Another tool to keep an eye on is interest rates. If the interest rate at which banks lend money rises, it would harm the economy, causing it to contract and, as a result, the value of the naira to fall.

Government Debt: National debt can impact investor confidence and, as a result, the influx of funds into the economy. If inflows are high, the naira exchange rate will rise in favour of the naira.

Speculators: Speculators frequently impact the naira-to-dollar exchange rate. They stockpile money in anticipation of a gain, causing the naira to plummet even lower.

Conditions of Trade: Favorable trade terms will lead to an increase in the value of the naira to the dollar, although Nigeria is currently experiencing a trade deficit. Everything comes from China, India, and the majority of Asian countries.