On Tuesday, May 21, 2024, the exchange rate for the Nigerian Naira at the parallel market, commonly known as the black market, was reported to be ₦1,485.544 to 1 US Dollar. This information was provided by Naira rate’s Official X handle, a presumably reputable source for currency exchange information.
The black market exchange rate is significant because it reflects the value of the Naira in informal or unregulated currency exchange channels. While the official exchange rate may differ, the black market rate is often considered a more accurate representation of the true value of the Naira, as it is determined by supply and demand dynamics in the informal economy.
The reported exchange rate indicates that the Naira appreciated by ₦17 against the US Dollar compared to previous rates. An appreciation in the value of the Naira against the Dollar suggests increased demand for Naira or reduced demand for Dollar in the black market.
Several factors could contribute to fluctuations in the black market exchange rate, including changes in government policies, economic conditions, political stability, and external factors such as global oil prices (since Nigeria is a major oil exporter).
Overall, the reported exchange rate provides valuable insight into the currency dynamics in Nigeria, offering individuals and businesses an indication of the current value of the Naira relative to the US Dollar in the informal currency exchange market.