What are the factors that affect the exchange rate of Australian dollar to naira in the black market?

3 answers

• Dec 17, 2021 · 3 years ago
  The exchange rate between the Australian dollar and the Nigerian naira in the black market is influenced by several factors. One of the main factors is the demand and supply dynamics of these currencies. When there is a high demand for Australian dollars and a low supply of Nigerian naira, the exchange rate tends to increase. On the other hand, when there is a high supply of Australian dollars and a low demand for Nigerian naira, the exchange rate tends to decrease. Other factors that can affect the exchange rate include economic indicators, political stability, inflation rates, and interest rates. It's important to note that the black market exchange rate may differ from the official exchange rate due to various factors such as government regulations and restrictions. Overall, the exchange rate in the black market is influenced by a combination of economic and non-economic factors.
  895448
• Dec 17, 2021 · 3 years ago
  The exchange rate between the Australian dollar and the Nigerian naira in the black market can be influenced by a variety of factors. One of the key factors is the economic performance of both countries. If Australia's economy is performing well and Nigeria's economy is struggling, the exchange rate may favor the Australian dollar. Additionally, political stability, inflation rates, and interest rates can also impact the exchange rate. Another factor to consider is the demand for each currency in the black market. If there is a high demand for Australian dollars and a low supply of Nigerian naira, the exchange rate may increase. Conversely, if there is a high supply of Australian dollars and a low demand for Nigerian naira, the exchange rate may decrease. It's important to note that the black market exchange rate may not always reflect the true value of the currencies and can be subject to manipulation and speculation.
  932311
• Dec 17, 2021 · 3 years ago
  The exchange rate between the Australian dollar and the Nigerian naira in the black market is influenced by various factors. One of the main drivers is the demand for each currency. If there is a high demand for Australian dollars and a low supply of Nigerian naira, the exchange rate will likely increase. Conversely, if there is a high supply of Australian dollars and a low demand for Nigerian naira, the exchange rate may decrease. Economic factors such as inflation rates, interest rates, and economic performance can also impact the exchange rate. Political stability and government policies can also play a role. It's important to note that the black market exchange rate may not always reflect the true value of the currencies and can be subject to fluctuations and speculation. As an investor, it's important to stay informed about these factors and monitor the exchange rate closely.
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