Aboki Naira To Dollar Black Market Rate Today 27th January 2025

On Monday, January 27, 2025, the Nigerian Naira continued to face volatility in the black market, commonly referred to as the “Aboki” market, against the US Dollar.

Recent data reveals that the buying rate for one US Dollar is approximately ₦1,665, while the selling rate is around ₦1,675. This slight fluctuation reflects the ongoing economic dynamics within Nigeria’s foreign exchange market.

In the black market, which often operates outside the official Central Bank of Nigeria (CBN) regulations, these rates are significantly higher than the official bank rates due to the high demand for dollars and the limited supply. The black market plays a critical role in Nigeria’s economy, where many citizens and businesses turn to foreign currency due to restrictions or delays in accessing dollars through official channels.

Factors influencing these rates include:

• Inflation Rates: High inflation in Nigeria directly impacts the black market exchange rates. With inflation not under control, the Naira’s value depreciates, increasing the cost of the Dollar.
• Interest Rates: When interest rates rise, the economy contracts, weakening the Naira.
• Government Debt: A high national debt can deter foreign investment, decreasing dollar inflows and thus affecting the exchange rate.
• Speculation: Speculators often hoard currency, betting on future gains, which can lead to a further decline in the Naira’s value.
• Terms of Trade: Nigeria’s unfavorable terms of trade, coupled with its heavy reliance on imports, continue to pressure the Naira.
• Recession: Economic downturns or recessions can scare away investors, reduce foreign direct investment, and exacerbate Naira’s depreciation.

Despite the CBN’s efforts to stabilize the Naira through various monetary policies, the black market remains a significant indicator of the currency’s real-time value. The Central Bank has suspended dollar sales to Bureau de Change (BDC) operators, directing banks to meet the dollar needs of ordinary citizens for legitimate purposes, which has shifted more transactions to the black market.