What factors influence the exchange rate for naira to dollar in the black market today?

3 answers

• SomolokoAug 12, 2020 · 5 years ago
  The exchange rate for naira to dollar in the black market today is influenced by several factors. One of the key factors is the demand and supply of both currencies. When there is a high demand for dollars and a limited supply, the exchange rate tends to increase. On the other hand, when there is a high supply of dollars and a low demand, the exchange rate may decrease. Other factors include inflation rates, interest rates, political stability, and economic performance of both countries. These factors can affect the confidence of investors and speculators, leading to fluctuations in the exchange rate.
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• Kay BondeJan 06, 2021 · 5 years ago
  The exchange rate for naira to dollar in the black market today is affected by various factors. One important factor is the level of foreign direct investment (FDI) in Nigeria. When there is a significant inflow of foreign investment, it can increase the demand for naira, leading to an appreciation of the currency. Conversely, if there is a decrease in FDI, it can put downward pressure on the exchange rate. Additionally, the country's trade balance, government policies, and geopolitical events can also impact the exchange rate. It is important to note that the black market exchange rate may differ from the official exchange rate due to factors such as currency controls and market inefficiencies.
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• McNulty TangeNov 04, 2024 · 10 months ago
  As an expert in the field, I can tell you that the exchange rate for naira to dollar in the black market today is influenced by a variety of factors. These factors include economic indicators, such as GDP growth, inflation rates, and interest rates. They also include political factors, such as government stability and policies. Furthermore, market sentiment and speculation can play a significant role in determining the exchange rate. It is important to keep in mind that the black market exchange rate is not regulated and can be subject to volatility. Therefore, it is advisable to stay informed about the latest economic and political developments that may impact the exchange rate.
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