Last updated on September 2nd, 2024 at 08:38 pm
Disclaimer: There may be a slight difference between the rate you see on this page and the rate at the parallel market.
Here is the updated buying and selling exchange rate of the three most popular foreign currencies in Nigeria:
Morning Trading Rate (Sept. 2, 2024)
- USD/NGN = 1,632/1,648
- EUR/NGN= 1,780/1,813
- GBP/NGN= 2,115/2,170
- CAD/NGN= 1,209/1,221
Afternoon Trading Rate (Sept. 2, 2024)
- USD/NGN = 1,630/1,640
- EUR/NGN= 1,768/1,788
- GBP/NGN= 2,125/2,145
- CAD/NGN= 1,207/1,215
Evening Trading rate (Sept. 2, 2024)
- USD/NGN = 1,630/1,640
- EUR/NGN= 1,768/1,788
- GBP/NGN= 2,125/2,145
- CAD/NGN= 1,207/1,215
To make that this page reflects the prevailing rate at the unofficial FX market, this page shall be updated in the morning between 8:30 AM to 11:00 AM; in the afternoon between 12:30 to 2:30 while the evening trading sessions are updated between 4:00 PM to 6:00 PM
What is a parallel market in FX?
A parallel market is an unofficial price at a foreign exchange market where traders buy and sell USD, GBP, EURO for the local currency. In Nigeria, for instance, there is a wide margin between the official rate and the unofficial rate. It is prevalent in a country where there is a multiple exchange rate.
The black market is usually referred to as an illegal market that is operated outside the official regulations. In the FX market, it is the responsibility of the Central Bank of Nigeria (or the apex bank of any country) to intervene regularly to prevent the naira from losing its value against its peers in the FX market.
Prices that are not supported by the Central Bank of Nigeria (CBN) characterize the operation of the parallel market of foreign exchange in a country that operates a multiple exchange rate.
The short supply of FX at the official market made the black market so popular that investors patronise it more than the official market because of its accessibility.
Why do we have a black market rate in the Forex market?
If the apex bank fails to enforce its policy, the market will become a free-for-all whereby every seller and buyer operates an exchange rate that favors both parties.
What happens in an economy where the black market reigns is that the apex bank losses part of its monetary control, especially when the official rate is not accessible to investors.
The popularity of the black market in Nigeria creates a more porous foreign exchange. It also put pressure on the naira. It makes FX users see the black market rate as their ‘savior’ in times of emergency.
For instance, getting approval to meet foreign school fees needs on the CBN’s TMS for FX takes four weeks or more. The delay pushes a lot of students and importers who need FX for their business to the black market.
TMS means Trade Monitoring System. It is a platform created by Nigeria’s apex bank for Nigerians to submit their applications for FX.
Dramatic changes in the Black market exchange rate
There has been a dramatic change in the margin between the official rate and the unofficial rate within a period of two-year.
For instance, one US Dollar is exchanged at NGN470 by the end of 2020 (December 31) at the unofficial market through the New Year (2021).
But before the end of November 2021, the USD had gained more against Nigeria’s currency as it ended the month at NGN540 to USD as can be seen in one of our daily updates.
Previous Tracking of USD/NGN Rate at the Parallel Market
Black Market Rate in 2021
November 12, 2021
- Buy: NGN540
- Sell: NGN530
September 30, 2021
- Buy: N580
- Sell: N570
September 16, 2021
- Buy: N562 ended NGN570
- Sell: N552 dropped to NGN560
September 15, 2021
- Buy: N562
- Sell: N552
September 14, 2021
- Buy: N557
- Sell: N550
September 13, 2021
- Buy: N550
- Sell: N543
September 10, 2021
- Buy: N545
- Sell: N538
September 9, 2021
- Buy: N540
- Sell: N532
September 3, 2021
- Buy: N532
- Sell: N527
September 3, 2021
- Buy: N530
- Sell: N525
August 31, 2021
- Buy: N527
- Sell: N520
August 30, 2021
- Buy: N527
- Sell: N524
August 27, 2021
- Buy: N516
- Sell: N521
August 26, 2021
- Buy: N516
- Sell: N521
August 23, 2021
- Buy: N512
- Sell: N520
August 17, 2021
- Buy: N508
- Sell: N515
August 13, 2021
- Buy: N507
- Sell: N515
August 12, 2021
- Buy: N507
- Sell: N515
August 10, 2021
- Buy: N503
- Sell: N510
August 06, 2021
- Buy: N495
- Sell: N508
August 04, 2021
- Buy: N498
- Sell: N506
July 30, 2021
- Buy: N512
- Sell: N520
July 29, 2021
- Buy: N510
- Sell: N525
July 27, 2021
- Buy: N500/$1
- Sell: N505/$1
February 02, 2021
- Buy: N474/$1
- Sell: N480/$1
January 25, 2021
- Buy: N472/$1
- Sell: N477/$1
January 22, 2021
- Buy: N472/$1
- Sell: N477/$1
January 21, 2021
- Buy: N472/$1
- Sell: N475/$1
January 20, 2021
- Buy: N471/$1
- Sell: N475/$1
January 19, 2021
- Buy: N470/$1
- Sell: N475/$1
January 18, 2021
- Buy: N470/$1
- Sell: N475/$1
January 15, 2021
- Buy: N470/$1
- Sell: N475/$1
January 14, 2021
- Buy: N470/$1
- Sell: N475/$1
January 13, 2021
- Buy: N470/$1
- Sell: N474/$1
January 12, 2021
- Buy: N470/$1
- Sell: N475/$1
January 11, 2021
- Buy: N467/$1
- Sell: N472/$1
January 08, 2021
- Buy: N467/$1
- Sell: N472/$1
January 07, 2021
- Buy: N465/$1
- Sell: N470/$1
January 06, 2021
- Buy: N465/$1
- Sell: N470/$1
January 05, 2021
- Buy: N465/$1
- Sell: N470/$1
January 04, 2021
- Buy: N465/$1
- Sell: N470/$1
January 1, 2021
- Buy: N465/$1
- Sell: N470/$1
USD-NGN black market rate in 2020
December 31, 2020
- Buy: N465/$1
- Sell: N470/$1
December 30, 2020
- Buy: N465/$1
- Sell: N470/$1
December 29, 2020
- Buy: N465/$1
- Sell: N470/$1
December 29, 2020
- Buy: N460/$1
- Sell: N465/$1
December 25, 2020
- Buy: N460/$1
- Sell: N465/$1
December 24, 2020
- Buy: N470/$1
- Sell: N475/$1
December 23, 2020
- Buy: N465/$1
- Sell: N475/$1
December 22, 2020
- Buy: N470/$1
- Sell: N476/$1
December 21, 2020
- Buy: N472/$1
- Sell: N477/$1
December 18, 2020
- Buy: N472/$1
- Sell: N477/$1
December 17, 2020
- Buy: N472/$1
- Sell: N478/$1
December 16, 2020
- Buy: N470/$1
- Sell: N475/$1
December 15, 2020
- Buy: N470/$1
- Sell: N475/$1
December 14, 2020
- Buy: N470/$1
- Sell: N475/$1
December 11, 2020
- Buy: N470/$1
- Sell: N475/$1
December 10, 2020
- Buy: N470/$1
- Sell: N478/$1
December 9, 2020
- Buy: N470/$1
- Sell: N483/$1
December 8, 2020
- Buy: N470/$1
- Sell: N483/$1
December 7, 2020
- Buy: N465/$1
- Sell: N480/$1
December 4, 2020
- Buy: N465/$1
- Sell: N475/$1
December 3, 2020
- Buy: N475/$1 closed at N460
- Sell: N485/$1 closed at N470
December 2, 2020
- Buy: N475/$1
- Sell: N485/$1
December 1, 2020
- Buy: N490/$1
- Sell: N500/$1
November 30, 2020
- Buy: N490/$1
- Sell: N500/$1
November 28, 2020
- Buy: N485/$1
- Sell: N500/$1
November 27, 2020
- Buy: N485/$1
- Sell: N495/$1
November 26, 2020
- Buy: N485/$1
- Sell: N495/$1
November 25, 2020
- Buy: N480/$1
- Sell: N487/$1
November 24, 2020
- Buy: N476/$1
- Sell: N483/$1
November 23, 2020
- Buy: N474/$1
- Sell: N484/$1
November 20, 2020
- Buy: N474/$1
- Sell: N484/$1
November 19, 2020
- Buy: N470/$1 it closed at N472 before the close of business
- Sell: N478/$1 closed at N480 before the close of business
November 18, 2020
- Buy: N470/$1
- Sell: N478/$1
November 17, 2020
- Buy: N470/$1
- Sell: N475/$1
November 16, 2020
- Buy: N467/$1
- Sell: N475/$1
November 13, 2020
- Buy: N460/$1
- Sell: N470/$1
November 12, 2020
- Buy: N460/$1
- Sell: N468/$1
November 11, 2020
- Buy: N460/$1
- Sell: N465/$1
November 10, 2020
- Buy: N460/$1
- Sell: N465/$1
November 9, 2020
- Buy: N458/$1
- Sell: N464/$1
November 5, 2020
- Buy: N458/$1
- Sell: N465/$1
November 4, 2020
- Buy: N458/$1
- Sell: N464/$1
November 3, 2020
- Buy: N458/$1
- Sell: N463/$1
October 30, 2020
- Buy: N457/$1
- Sell: N462/$1
October 29, 2020
- Buy: N458/$1
- Sell: N465/$1
October 28, 2020
- Buy: N458/$1
- Sell: N463/$1
October 27, 2020
- Buy: N458/$1
- Sell: N463/$1
October 26, 2020
- Buy: N457/$1
- Sell: N463/$1
October 23, 2020
- Buy: N457/$1
- Sell: N463/$1
October 17, 2020
- Buy: N457/$1
- Sell: N462/$1
October 16, 2020
- Buy: N457/$1
- Sell: N462/$1
October 15, 2020
- Buy: N455/$1
- Sell: N462/$1
October 14, 2020
- Buy: N455/$1
- Sell: N462/$1
October 13, 2020
- Buy: N455/$1
- Sell: N460/$1
October 12, 2020
- Buy: N452/$1
- Sell: N457/$1
October 9, 2020
- Buy: N452/$1
- Sell: N457/$1
October 8, 2020
- Buy: N452/$1
- Sell: N457/$1
October 7, 2020
- Buy: N453/$1
- Sell: N458/$1
October 6, 2020
- Buy: N453/$1
- Sell: N458/$1
October 5, 2020
- Buy: N450/$1
- Sell: N458/$1
October 2, 2020
- Buy: N460/$1
- Sell: N465/$1
October 1, 2020
- Buy: N460/$1
- Sell: N465/$1
September 30, 2020
- Buy: N462/$1
- Sell: N468/$1
September 29, 2020
- Buy: N460/$1
- Sell: N467/$1
September 28, 2020
- Buy: N460/$1
- Sell: N467/$1
September 25, 2020
- Buy: N460/$1
- Sell: N467/$1
September 24, 2020
- Buy: N460/$1
- Sell: N465/$1
September 23, 2020
- Buy: N458/$1
- Sell: N465/$1
September 22, 2020
- Buy: N458/$1
- Sell: N465/$1
September 21, 2020
- Buy: N457/$1
- Sell: N465/$1
September 18, 2020
- Buy: N455
- Sell: N462
September 17, 2020
- Buy: N455
- Sell: N465
September 16, 2020
- Buy: N455
- Sell: N465
September 15, 2020
- Buy: N460
- Sell: N460
September 14, 2020
- Buy: 445
- Sell: N460
September 11:
- Buy: N440
- Sell: N460
September 10:
- Buy: N440
- Sell: N455
September 9:
- Buy: N433
- Sell: N445
September 8:
- Buy: N430/$1
- Sell: N445/$1 closed at N443
September 7:
- Buy: N430
- Sell: N440 (closed at N445)
September 5:
- Buy: N430/$1
- Sell: N440/$1
September 4, 2020:
- Buy: N430
- Sell: N440
September 3, 2020:
- Buy: N420
- Sell: N440
September 2, 2020:
- Buy: N425
- Sell: N440
September 1, 2020:
- Buy: N462
- Sell: N465
August 31, 2020:
- Buy: N463
- Sell: N470
CBN fund account of 5,180 BDCs
Meanwhile, the apex bank has funded accounts of over 5,180 BDCs with $51.8m for forex sales resumption just as international flights resumed at the Federal Capital Territory, Abuja.
We heard the certified Bureau De Change operators received the funds late Monday night, September 7, 2020.
What does this mean for Naira?
The Naira is expected to gain against the US dollar through the week and through the year if the CBN continues to play its regulatory roles and ensures compliance from banks and the BDCs.
Naira falls at black market against US dollar September 8
On Tuesday, September 8, 2020, Nigerian Naira falls further against the US dollar instead of the anticipated gain. At the parallel market, it’s N445/$1 despite the resumed sales of over $50 million to 5,180 BDC operators.
Conclusion:
The official exchange rate is the rate set by the Central Bank of Nigeria (CBN). It is one of the monetary policies of the apex bank.
The unofficial foreign exchange traders and the market rate is unregulated, it is considered illegal and anyone who trades in this market could be arrested if the apex bank is determined to exercise its monetary power as we saw in the case of CBN vs abokifx.com in 2021.
The black market exchange rate of USD to the Naira you would get in Lagos may not be the same rate in Ibadan, Abeokuta or Kaduna.
The economic activities as they relate to traveling in and out of investors and traders plus demand play a huge role in the rate you get in your location.
