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For almost three days, Naira to US Dollar exchange rate at the black market has been hanging between 336 Naira to 370 Naira at buying and selling rate.
It’s a free for all at the exchange market. For instance Diamond Bank on November 27, 2018 bought 1$ for 336 Naira.
The above Naira to Dollar (US) exchange rate depends on your location. Sellers and buyers in Lagos enjoy better interchange in the FX market than other parts of the country.
Considering the commercial nature of Lagos, Nigeria’ financial and commercial city, that’s understandable.
Now let’s take a look at the official exchange rate, but first…
What is Dollar to Naira Official Rate?
This is the rate at which the Central Bank of Nigeria, CBN, sells foreign currencies (like US Dollar, British Pounds, Euro, Riyal, Swiss Franc etc) to licenced financial institutions, and other institutions that have the statutory financial licence of the apex bank.
So take a look at Dollar to Naira official exchange rate of the CBN below: the buy and sell:
November 22: As at Thursday, it’s N305.75 (buying); and 306.75 Naira (selling) from the CBN
November 1: Buying from CBN was 305.6 Naira while Selling went for N306.6 Naira.
There has not been a significant change in CBN exchange rate since the beginning of November, 2018, , the only slight difference we’ve been having hasn’t been up to a Naira.
Anyone can’t just work in to the CBN and says he wants to buy dollar or any other foreign currencies, which brings us to the issue black market rate.
What is Dollar to Naira Black Market Rate?
This is the rate at which banks in Nigeria, currency merchants will buy and sell currency to individuals. The main aim of the operators of the black market rate of currencies is to make profit by buying at lower price from whoever wants to sell, in turn sell at higher rate to make.
For instance a merchant may offer to buy US Dollar from you at the rate of 330 Naira (or slightly below) but when you want to buy from him, then you should be ready to pay 350 Naira or more.
A merchant is taking risk as well, because if he bought Dollar from you at 340 Naira and within hours Naira gained against the Dollar (meaning dollar value goes down), he will be at lost. That’s how the black market exchange rate of foreign currencies operates in Nigeria.
My experience about Dollar to Naira at the black market rate: April 29, 2018
This post is based my Dollar to Naira exchange rate (black market) experience with GT Bank on April 29, 2018
Officially one dollar to Nigerian Naira was N305.65 on Central Bank of Nigeria (CBN ) exchange rate as at April 29, 2018, but the black market is free for all, which gives Guaranty Trust Bank and presumably other financial institutions to sell $1USD at the rate N368.354Kobo today (April 29)
While GTBank sold for N368.354kobo, abokifx.com sells for N363 as at April 27, 2018, making GTB more expensive than other bureau de change in the market.
Disclaimer: The exchange rate here was based on my personal experience with GTBank exchange rate. It’s subject to change. The view expressed here is absolutely the author’s. We’ll keep updating this post.
In one of my trading platforms, where I needed to fund my account with dollar, GTB deducted N1,842.77kobo for just $5USD at about 0800hours.
Dollar to Naira exchange rate at the official market and black market rate at Bureau De Change isn’t static though, this could be attributed to monetary policies of the Federal Government, which made Nigerians who buy goods and services on international trading platforms like alibaba.com, ontega.com, iqoption.com and other foreign-based trading platforms to pay more than they bargained for.
What makes this astonishing is the fact that there won’t be any alert or notice about how much would be deducted from your account balance.
The immediate message you can ever get from Nigerian bank is: “Naira equivalent of USDD5.00 has been authorized for the transaction done on…”
It could take GTB 24hours or more to send you your account balance, the fastest method to do this is by using the *737#, enter 7, and input the last four digits of your debit card, which isn’t free.
Abokifx: The fx will buy $1USD from you at the rate of N360, while it sells the same dollar for N362.
For Britain’s Pounds Sterling, it’s N500 if you’re selling while buying costs N550.
Euro: It’s N436 , and N442 if you’re buying from abokifx.
Its exchange rate is fair compared to other exchangers in the market. It’s even better than some financial institutions in Nigeria.
This makes abokifx a stop for everyone who wants to have fair dealing in their exchanges.
GT Bank, Access Bank, Wema Dollar to Naira rate:
At the time of updating this post, the last dollar exchange rate at GT bank was April 30, which was N367.
Wema and Access Bank today will sell a dollar for you at the rate of N367 to a dollar.
What customer-oriented regulatory roles does CBN have on Nigerian banks in terms of exchange rate?
Nigerian banks are shrouded with so many hidden charges, which they hardly pre-inform their customers.
While we may not be able to give you the history of exchange rate of US dollar to Nigerian Naira, it however seems that Central Bank of Nigeria (CBN) doesn’t have control over Nigerians banks how much a foreign currency should exchange for.
Back in 2014/2015, when a dollar was below N200 buying on international market places was a great experience.
Today, that has changed, because you may have to spend more than buying at home at the end considering the quantity of products you’re ordering
At the time of going to press, here is the CBN exchange rate (selling) below of the top twelve traded foreign currencies in Nigeria:
|Currency (April 27, 2018)||Selling (Naira)|
|South African Rand||24.6476|
Infomediang final take:
While high rate of imported goods, and poor leadership may be attributed to be this abnormal exchange rate, a serious government can through its monetary policy work things out to make Nigerian Naira more valuable against other foreign currencies.
More disturbing is the fact that Botswana and The Gambia currencies are even valuable than Nigerian Naira. These two countries look up to Nigeria as the giant of Africa.
The wide disparity between US Dollar and Naira is one of the reasons why Nigerians migrate to the United States, and other countries around the world with better economy. We hope things will be fixed one day.
How much were you charged by your bank the last time you made international purchase through your credit card?
Share your thoughts with us.