As of Tuesday, February 11, 2025, the exchange rate between the U.S. dollar (USD) and the Nigerian naira (NGN) in the Lagos parallel market (commonly known as the black market) remains volatile.
According to sources within the Bureau De Change (BDC) sector, the following rates apply:
- Buying Rate: ₦1,550 per $1
- Selling Rate: ₦1,570 per $1
Official CBN Exchange Rate
The Central Bank of Nigeria (CBN) continues to regulate foreign exchange transactions within the official market. As of the last update, the exchange rate in the CBN-controlled market was recorded as follows:
- Highest Rate: ₦1,503 per $1
- Lowest Rate: ₦1,496 per $1
It is crucial to note that the CBN does not officially recognize the black market. Individuals and businesses seeking foreign exchange are encouraged to use authorized financial institutions such as commercial banks and licensed forex dealers.
Why Is There a Difference Between the Black Market and Official Rates?
The disparity between the black market and official exchange rates can be attributed to several factors, including:
- Forex Supply and Demand: The limited availability of U.S. dollars within official channels often forces businesses and individuals to seek alternative sources, driving up prices in the parallel market.
- CBN Regulations: The central bank’s policies on forex allocations and restrictions on certain transactions create inefficiencies, leading to an increase in demand within the informal sector.
- Market Speculation: Investors and currency traders often anticipate fluctuations in the naira’s value, influencing buying and selling patterns.
- Economic Conditions: Inflation, foreign reserves, and international trade imbalances also play a significant role in determining exchange rates.
Future Outlook for the Naira
Financial analysts predict continued pressure on the naira in the coming months. Some forecasts suggest the currency could weaken further, possibly reaching ₦1,700 per $1 by mid-2025 if structural economic issues persist. However, interventions by the CBN, such as increased forex liquidity and policy adjustments, could help stabilize the market.
Advice for Forex Transactions
Given the volatility of the exchange rate, individuals and businesses are advised to:
- Monitor multiple sources before engaging in forex transactions.
- Utilize official banking channels whenever possible to avoid legal or financial risks.
- Stay updated on CBN policies, as regulatory changes can impact forex availability and pricing.
Since exchange rates fluctuate rapidly, staying informed through reliable financial news sources and consulting financial experts is essential for making informed decisions.
