If you’ve been keeping an eye on the dollar to naira exchange rate, you’ve probably noticed the roller coaster ride it has been lately.
On May 17, 2024, the black market exchange rate for one US dollar is fluctuating between ₦1550 and ₦1560, with an average of ₦1553.75. This rate is based on data gathered from four different sources provided by users.
A Snapshot of the Last Week
To give you some perspective, let’s look at how the rates have changed over the past week. From May 10, 2024, to May 17, 2024, the dollar to naira black market sell rate ranged between ₦1450 and ₦1560.
The average rate during this period was ₦1522.86. If we compare today’s values with the last seven days, there’s been an increase of 30.89 points, moving from ₦1522.86 to ₦1553.75, which equates to a 2.03% rise.
Today’s Exchange Rate Details
According to sources at Bureau De Change (BDC), the exchange rate today, May 17, 2024, shows that $1 is being sold for ₦1550 and bought for ₦1520. Let’s break this down:
- Buying Rate: ₦1540 per $1 USD
- Selling Rate: ₦1550 per $1 USD
Compared to yesterday’s rates, where $1 was sold for ₦1530, there’s a noticeable increase, marking a trend of continuous weakening of the naira against the dollar in the black market.
Also Read: Ranking: 10 African Nations with the Most Weakest Currencies in 2024
Why is the Exchange Rate Fluctuating?
The black market exchange rate is incredibly dynamic. Several factors contribute to its constant fluctuation:
Economic Policies and Regulations
The Nigerian government’s economic policies and regulations can heavily influence the exchange rate. Changes in monetary policy, foreign exchange reserves, and trade balances all play significant roles.
Market Speculation
Speculation by traders and investors can cause short-term volatility. Rumors and news about potential economic shifts can lead to rapid changes in the exchange rate.
Global Economic Conditions
Global economic events, such as changes in oil prices (a key export for Nigeria) and international trade agreements, can impact the exchange rate.
The Impact of Exchange Rate Fluctuations
Inflation
A weaker naira can lead to higher import costs, contributing to inflation. Everyday goods and services may become more expensive, affecting the cost of living.
Business Operations
Businesses that rely on imported goods and raw materials face increased costs, which can impact their profitability and pricing strategies.
Investment Decisions
Fluctuating exchange rates can influence foreign investment in Nigeria. Investors may be wary of instability, affecting the country’s economic growth.
US Dollar (USD) to Naira (NGN) Black Market Exchange Rate for Different Denominations.
| Amount in Dollars ($) | Buying Rate (₦) | Selling Rate (₦) |
| $1 (USD) | ₦1,540 | ₦1,550 |
| $5 (USD) | ₦7,700 | ₦7,750 |
| $10 (USD) | ₦15,400 | ₦15,500 |
| $20 (USD) | ₦30,800 | ₦31,000 |
| $50 (USD) | ₦77,000 | ₦77,500 |
| $100 (USD) | ₦154,000 | ₦155,000 |
Conclusion
The dollar to naira exchange rate in the black market is a constantly shifting landscape influenced by a myriad of factors. As of today, May 17, 2024, the rate stands between ₦1550 and ₦1560. Staying informed and understanding the underlying causes of these fluctuations can help you navigate this volatile market more effectively.