Welcome to today’s update on the Dollar to Naira exchange rate. The Naira continues to experience fluctuations against the US Dollar in both the official and parallel markets. Below are the latest rates as of Monday, January 6, 2025.
Official Exchange Rate (CBN)
The Central Bank of Nigeria (CBN) has pegged today’s official exchange rate between the Dollar and Naira as follows:
- Highest Rate: ₦1,540 per $1
- Lowest Rate: ₦1,531 per $1
Parallel Market (Black Market) Rates
In the parallel market, the exchange rate remains significantly higher than the official rate:
- Buying Rate: ₦1,660 per $1
- Selling Rate: ₦1,665 per $1
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Understanding the Rates
The disparity between the official and black market rates reflects the ongoing challenges in Nigeria’s foreign exchange market. While the Central Bank of Nigeria continues to regulate official rates, the parallel market thrives due to high demand for Dollars from businesses and individuals.
Key Factors Influencing the Exchange Rate:
- Inflation: Rising inflation continues to weaken the Naira’s value.
- Demand for Dollars: High import dependency increases demand for foreign currency.
- Oil Revenue: As oil is Nigeria’s primary foreign exchange earner, fluctuations in oil prices directly impact the Naira.
Advice for Forex Transactions
The Central Bank of Nigeria advises citizens to use official channels for forex transactions and avoid patronizing the black market, as it is unregulated. Always consult multiple sources or financial institutions to get accurate and updated exchange rates.
The Dollar to Naira exchange rate remains a critical indicator of Nigeria’s economic health. As the country grapples with economic challenges, the exchange rate is expected to continue fluctuating. Stay tuned to this blog for daily updates on the Dollar to Naira exchange rates.
Disclaimer: The rates listed above are subject to change based on market conditions. For accurate transactions, verify rates with your bank or forex dealer.
