What factors influence the black market exchange rate between naira and dollar?

6 answers

• Nilesh GoyalSep 10, 2020 · 5 years ago
  The black market exchange rate between the Nigerian naira and the US dollar is influenced by several factors. One of the main factors is the demand and supply dynamics in the black market. When there is a high demand for US dollars and a limited supply, the exchange rate tends to increase. On the other hand, when there is a low demand and a surplus supply of US dollars, the exchange rate tends to decrease. Other factors that can influence the exchange rate include inflation rates, economic stability, government policies, and political events. It is important to note that the black market exchange rate may differ from the official exchange rate due to various factors.
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• sergioJunioroJan 01, 2023 · 3 years ago
  The exchange rate between the Nigerian naira and the US dollar in the black market is affected by various factors. One of the key factors is the economic situation in Nigeria. If the economy is performing well and there is confidence in the Nigerian currency, the exchange rate may be more favorable. However, if there are economic uncertainties or instability, the exchange rate may be higher. Additionally, factors such as inflation, interest rates, and government policies can also impact the exchange rate. It is important for individuals and businesses to closely monitor these factors to make informed decisions regarding currency exchange.
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• Randall FisherFeb 14, 2022 · 4 years ago
  As an expert in the field, I can tell you that the black market exchange rate between the Nigerian naira and the US dollar is influenced by a variety of factors. These factors include economic indicators, such as inflation and interest rates, as well as political events and government policies. For example, if there is political instability or uncertainty in Nigeria, it can lead to a decrease in the value of the naira relative to the dollar. Additionally, changes in global economic conditions and market sentiment can also impact the exchange rate. It is important for individuals and businesses to stay informed about these factors to better understand and navigate the black market exchange rate.
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• chrislinuxosMar 28, 2024 · a year ago
  The black market exchange rate between the Nigerian naira and the US dollar is influenced by a combination of economic and political factors. Economic factors such as inflation, interest rates, and economic growth can affect the exchange rate. For example, if inflation is high in Nigeria, it can lead to a decrease in the value of the naira relative to the dollar. Political factors, such as government policies and political stability, can also impact the exchange rate. Additionally, market forces of supply and demand play a role in determining the black market exchange rate. It is important to consider these factors when engaging in currency exchange in the black market.
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• Ed BrownDec 21, 2023 · 2 years ago
  The black market exchange rate between the Nigerian naira and the US dollar is influenced by various factors. These factors include economic indicators, market sentiment, and government policies. For example, if there is a high demand for US dollars in the black market due to import needs or capital flight, it can lead to an increase in the exchange rate. On the other hand, if the Nigerian government implements policies to stabilize the exchange rate, it can have a positive impact. It is important to note that the black market exchange rate may not always reflect the true value of the currencies and can be subject to volatility.
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• Enrique Mondragon EstradaDec 21, 2023 · 2 years ago
  At BYDFi, we understand that the black market exchange rate between the Nigerian naira and the US dollar is influenced by various factors. These factors include economic indicators, market dynamics, and government policies. For example, if there is a high demand for US dollars in the black market, it can lead to an increase in the exchange rate. On the other hand, if the Nigerian government implements policies to stabilize the exchange rate, it can have a positive impact. It is important for individuals and businesses to stay informed about these factors and consider them when engaging in currency exchange in the black market.
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