Aboki Naira To Dollar Black Market Rate Today 8th November 2024

Lagos, November 8, 2024—As of today, the Nigerian Naira has shown signs of stabilization against the US Dollar in the parallel market, commonly referred to as the “Aboki” market.

This informal sector, which operates outside the official banking channels, has been a barometer for the real economic pressures the Nigerian currency faces.

• Buying Rate: The Naira is being bought at approximately ₦1,719.15 per USD. This rate reflects the amount informal currency traders, or ‘Abokis’, are willing to pay to acquire dollars from individuals or entities looking to sell.
• Selling Rate: On the other side, the selling price for the US Dollar stands at around ₦1,725 per USD. This indicates the premium that dealers charge when selling dollars to those needing foreign currency.

The slight appreciation of the Naira in the black market could be attributed to several factors:

1. Government Policies: Recent monetary policies from the Central Bank of Nigeria (CBN) aimed at stabilizing the Naira might be starting to show effects in the informal sector. While the official CBN rate for the dollar is listed at ₦1,665.841, the gap with the black market rate continues to exist, albeit narrowing.
2. Supply and Demand Dynamics: There might be an increase in dollar supply within this sector or a decrease in demand, which often fluctuates based on the seasonality of foreign travel, import needs, and speculative activities.
3. Economic Sentiment: Posts on social media and general market sentiment suggest a cautious optimism. Some traders and observers are noting this as a potential sign that government interventions are beginning to bear fruit, although skepticism remains due to historical trends of Naira depreciation.

Traders in major cities like Lagos and Abuja have noted that these rates are subject to change rapidly due to the unregulated nature of the black market. For individuals and businesses looking to exchange currency, it’s advisable to compare rates among different dealers, as prices can slightly vary due to local supply dynamics or the negotiating prowess of the traders.

The black market’s significance in Nigeria cannot be overstated. It serves not only individuals needing foreign currency for personal transactions like travel but also small to medium enterprises that might find official channels less accessible or more costly. However, the CBN does not recognize these informal market rates and has encouraged all forex transactions to go through official banking channels.

Experts are keeping a close eye on how these informal market rates will evolve, especially in light of Nigeria’s broader economic challenges, including inflation, which continues to exert pressure on the Naira’s value. The informal sector’s reaction often provides early insights into the public’s trust in the Naira and the economy’s health.