Dollar to Naira Black Market Exchange Rate for May 18, 2024

Today, May 18, 2024, the official exchange rate of the US dollar to the Nigerian Naira stands at ₦1,533 per US dollar. However, if you’re venturing into the black market, you’ll find the rates are a bit higher.

Official and Black Market Rates Explained

CBN Official Rate

Let’s break down today’s rates according to the Central Bank of Nigeria (CBN):

• Buying Rate: ₦1,533 per $1 US Dollar
• Selling Rate: ₦1,534 per $1 US Dollar

Black Market Exchange Rate

In the black market, the exchange rates differ slightly:

• Buying Rate: ₦1,530 per $1 US Dollar
• Selling Rate: ₦1,540 per $1 US Dollar

Why the Sudden Drop?

Several factors contribute to this depreciation:

• Economic Policies: Shifts in government policies can significantly impact exchange rates.
• Market Sentiment: Investor confidence and market speculation often drive short-term changes.
• Global Economic Conditions: Changes in global markets, like oil prices, can affect Nigeria’s exchange rate due to its reliance on oil exports.

Also Read: Ranking: 10 African Nations with the Most Weakest Currencies in 2024

Nigerian Customs Service (NCS) Adjustments Customs Duties Price

Reflecting the Naira’s depreciation, the Nigerian Customs Service (NCS) has raised its exchange rate for import duty collections to ₦1502.1 per US Dollar. This is the highest rate in seven weeks, surpassing the previous high of ₦1572 set in late March.

Ripple Effects

• Consumer Prices: Expect higher prices for imported goods.
• Inflation: Rising costs can fuel inflation, affecting everything from groceries to electronics.
• Business Planning: Companies relying on imports face increased costs and planning challenges.

Conclusion

Understanding the dynamics of the dollar to naira exchange rate is crucial for making informed financial decisions.

Whether you’re a business owner, an investor, or just someone keeping an eye on the economy, staying updated with the latest rates and trends is essential.

Black Market Rates