Today, May 21, 2024, the official exchange rate of the US dollar to the Nigerian Naira stands at ₦1,500 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: ₦1,500 per $1 US Dollar
- Selling Rate: ₦1,501 per $1 US Dollar
Black Market Exchange Rate
In the black market, the exchange rates differ slightly:
- Buying Rate: ₦1,510 per $1 US Dollar
- Selling Rate: ₦1,520 per $1 US Dollar
Check: Dollar to Naira Black Market Exchange Rate for May 22, 2024
Why the Sudden Drop?
Several factors contribute to this depreciation:
- Economic Policies: Shifts in government policies can significantly impact exchange rates.
- Market Sentiment: Investor confidence and market speculation often drive short-term changes.
- Global Economic Conditions: Changes in global markets, like oil prices, can affect Nigeria’s exchange rate due to its reliance on oil exports.
Also Read: Ranking: 10 African Nations with the Most Weakest Currencies in 2024
Nigerian Customs Service (NCS) Adjustments Customs Duties Price
Reflecting the Naira’s depreciation, the Nigerian Customs Service (NCS) has raised its exchange rate for import duty collections to ₦1502.1 per US Dollar. This is the highest rate in seven weeks, surpassing the previous high of ₦1572 set in late March.
Ripple Effects
- Consumer Prices: Expect higher prices for imported goods.
- Inflation: Rising costs can fuel inflation, affecting everything from groceries to electronics.
- Business Planning: Companies relying on imports face increased costs and planning challenges.
US Dollar to Naira Black Market Exchange Rate for Different Denominations
| Amount in Dollars ($) | Buying Rate (₦) | Selling Rate (₦) |
| $1 USD | ₦1,510 | ₦1,520 |
| $5 USD | ₦7,550 | ₦7,600 |
| $10 USD | ₦15,100 | ₦15,200 |
| $20 USD | ₦30,200 | ₦30,400 |
| $50 USD | ₦75,500 | ₦76,000 |
| $100 USD | ₦151,000 | ₦152,000 |
| $200 USD | ₦302,000 | ₦304,000 |
| $500 USD | ₦755,000 | ₦760,000 |
| $1000 USD | ₦1,510,000 | ₦1,520,000 |
| $5000 USD | ₦7,550,000 | ₦7,600,000 |
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.