Black Market Exchange Rate for US Dollar to Naira on 13th September 2023

Black Market Exchange Rate for US Dollar to Naira on 13th September 2023

The black market exchange rate for US Dollar to Naira on 13th September 2023 is around 930 Naira per 1 US Dollar according to user comments on The website notes that they cannot guarantee the trustworthiness of the rates shared by users in the comments.

Overview of Black Market Exchange Rate for US Dollar to Naira on 13th September 2023:

  • The average black market rate for Dollar to Naira today is ₦930 per $1 according to 1 sell rate shared by users in the comments section.
  • Over the past 7 days between 02/09/2023 and 11/09/2023, the black market sell rate for $1 fluctuated between ₦910 and ₦930. The 7-day average was ₦922.29.
  • Compared to the 7-day average of ₦922.29, today's rate of ₦930 shows a 0.84% increase or 7.71 points difference.
  • The average black market buy rate for $1 today based on user comments is ₦925.
  • Users frequently share both buy and sell rates for dollars, pounds, euros and other currencies in the comments. However, the website cautions readers not to trade with these users directly for safety reasons.

Factors influencing exchange rate fluctuations:

  • Supply and demand – When demand for dollars is high in Nigeria, the exchange rate tends to rise. When supply is high, the rate falls.
  • Government policies – CBN foreign exchange management policies impact official and black market rates.
  • Global economic conditions – Issues like oil price crashes, global recessions, or Covid-19 impact Nigeria's forex earnings.
  • Currency speculation – Activities of currency traders and speculators tend to create volatility in the black market.
  • Political instability – Uncertainty around elections, policy changes, security issues etc affects investor confidence.
  • Seasonal factors – Periods of high dollar demand like Christmas and summer travel push up exchange rates.

Dangers of black market:

  • No regulations or consumer protection
  • Higher exchange rates and commissions
  • Risk of fraud and fake currency
  • No paper trail or recourse in case of issues
  • Encourages illegal financial activities
  • Distorts financial planning and exchanges
  • Undermines economy and official exchange rate

Why black market persists:

  • Official forex scarcity and high demand
  • Arbitrage opportunities with parallel exchange rates
  • Willing buyers ready to pay higher premiums
  • Need for cash payments and lack of paper trail
  • Weak regulations and enforcement
  • Criticism of official rate as overvalued

How government tries to curb black market:

  • Improving dollar liquidity in official market
  • Unifying exchange rates
  • Enhanced Forex tracking and surveillance
  • Stricter enforcement and penalties
  • Policies to discourage cash transactions
  • Campaigns against black market use
  • Development of digital financial infrastructure

Risks of transacting on black market:

For buyers:

  • Getting counterfeit or fake currency
  • Overpaying for dollars due to lack of information
  • Personal security risk during physical exchanges
  • No legal recourse in case of disputes

For sellers:

  • Underpayment or non-payment after transaction
  • Theft of cash during physical exchange
  • No payment proof for audit trail purposes
  • Increased scrutiny by financial regulators

Recommendations for transacting safely:

  • Insist on physical verification of currency before payment
  • Start small and increase transaction size slowly
  • Use known contacts and references to find reputable dealers
  • Ensure personal safety during exchanges
  • Keep transaction records or evidence if possible
  • Avoid paying full amount upfront before receiving dollars
  • Be aware of latest official and parallel market rates
  • Stay vigilant of factors that may require exchange rate changes

Conclusion on Black Market Exchange Rate for US Dollar to Naira on 13th September 2023

The black market provides an alternative option for Nigerians dealing with foreign exchange needs. However, the risks and unintended economic consequences make it an imperfect solution. For sustainable improvements, stakeholders must work together to implement policies that expand transparent access to dollars, unify exchange rates, and improve market depth and liquidity while protecting consumer rights.

see also: 25 Most profitable online side hustles that only require a Laptop