What factors influence the exchange rate between dollar and naira in the black market?

6 answers

• Nov 25, 2021 · 3 years ago
  The exchange rate between the US dollar and the Nigerian naira in the black market is influenced by several factors. One of the main factors is the supply and demand dynamics of both currencies. If there is a high demand for US dollars and a limited supply of Nigerian naira, the exchange rate will increase. On the other hand, if there is a high supply of US dollars and a low demand for Nigerian naira, the exchange rate will decrease. Other factors that can influence the exchange rate include inflation rates, interest rates, political stability, and economic performance of both countries. These factors can create fluctuations in the exchange rate in the black market.
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• Nov 25, 2021 · 3 years ago
  The exchange rate between the US dollar and the Nigerian naira in the black market is affected by various factors. One of the key factors is the economic stability of Nigeria. If the country is facing economic challenges such as high inflation, low foreign reserves, or political instability, it can lead to a depreciation of the naira against the dollar in the black market. Additionally, the demand for US dollars for international trade and remittances also plays a role in determining the exchange rate. The black market exchange rate is often higher than the official exchange rate due to the limited availability of foreign currency in the black market.
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• Nov 25, 2021 · 3 years ago
  The exchange rate between the US dollar and the Nigerian naira in the black market is influenced by a combination of economic, political, and market factors. Economic factors such as inflation, interest rates, and trade balances can impact the exchange rate. Political factors such as government policies, stability, and corruption can also have an effect. Market factors such as supply and demand for both currencies in the black market can cause fluctuations in the exchange rate. It's important to note that the black market exchange rate may not always reflect the true value of the currencies, as it is influenced by various external factors.
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• Nov 25, 2021 · 3 years ago
  The exchange rate between the US dollar and the Nigerian naira in the black market is determined by a complex interplay of factors. While supply and demand dynamics play a significant role, other factors such as government interventions, capital controls, and market speculation also influence the exchange rate. In Nigeria, the scarcity of foreign currency in the official market has led to a thriving black market where individuals and businesses can exchange currencies at higher rates. It's important to be cautious when dealing with the black market, as the rates can be volatile and may not always reflect the true value of the currencies.
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• Nov 25, 2021 · 3 years ago
  At BYDFi, we believe that the exchange rate between the US dollar and the Nigerian naira in the black market is primarily influenced by supply and demand dynamics, as well as economic and political factors. However, it's important to note that the black market exchange rate is not regulated and can be highly volatile. We recommend individuals and businesses to use official channels for currency exchange to ensure transparency and avoid potential risks associated with the black market.
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• Nov 25, 2021 · 3 years ago
  The exchange rate between the US dollar and the Nigerian naira in the black market can be influenced by various factors. These include economic indicators such as inflation rates, interest rates, and GDP growth, as well as political stability and government policies. Additionally, market sentiment and speculation can also impact the exchange rate. It's important to closely monitor these factors and stay informed about the latest developments in order to make informed decisions when dealing with currency exchange in the black market.
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