What factors contribute to the fluctuation of the Canadian dollar to Naira exchange rate in the black market?

1 answers

• Nov 23, 2021 · 3 years ago
  The fluctuation of the Canadian dollar to Naira exchange rate in the black market is influenced by various factors. Supply and demand dynamics play a significant role in determining the exchange rate. When there is a higher demand for Canadian dollars in the black market, the exchange rate tends to increase. Conversely, when there is a higher supply of Canadian dollars, the exchange rate tends to decrease. Economic indicators, such as inflation rates, interest rates, and GDP growth, also impact the exchange rate. Additionally, geopolitical events, government policies, and market sentiment can contribute to the fluctuation. It's important to note that the black market exchange rate may deviate significantly from the official exchange rate due to factors such as limited access to foreign currency and the presence of informal trading networks. However, it's essential to conduct transactions through reputable and regulated platforms to ensure transparency and security.
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