The black market, or parallel market, serves as an unofficial platform for trading foreign currencies, diverging from the rates set by the Central Bank of Nigeria (CBN).CONTINUE READING>>>>>
Individuals and businesses resort to the black market due to limited access to the official market, often attributed to scarcity, restrictions, or regulatory constraints.
As of April 29th, 2024, purchasing 1 Canadian dollar in the black market would require ₦1,085.00, while selling 1 Canadian dollar would yield ₦1,075.00.
It’s important to note that slight variations in these rates may occur based on geographical location and dealer preferences.
The official exchange rate for the Canadian dollar to Nigerian naira, as of today, April 29th, 2024, stands at ₦927.47 per US dollar, as determined by the CBN.
This rate serves as the benchmark for CBN transactions and interventions in the foreign exchange market, extending its influence to other major currencies like the euro, pound sterling, and Chinese yuan.
The disparity between the black market rate and the official rate, termed as the parallel market premium, reflects the extent of deviation between the formal and informal currency markets.
It also serves as an indicator of confidence levels in the naira and the effectiveness of CBN’s monetary policies.CONTINUE READING>>>>>
