What sum should Nigerians pay to get a dollar on Nigerian current black market? Are black markets popular in Nigeria? Read the information below to learn the latest facts about money.
Naira exchange rate to dollar
There are two rates of dollar to Naira in Nigeria: official and parallel. Official one was fixed at the beginning of 1994 at the level of 22 naira for US dollar and since then, it didn't change. The parallel course for the same time has decreased. Commercial banks and exchange offices in large hotels work at parallel course. Official one is intended for calculations for the foreign trade operations, and in everyday life, you won't face it anywhere.
But recently the central bank of Nigeria has refused policy of a binding of Naira exchange rate of national currency of naira to dollar at the rate of 197:1. The social media service writes about it. It has cardinally changed the situation on black market. Naira exchange rate today is 350 for one USD.
Dollar to Naira innovations
According to analysts, it was more difficult for state to support an official rate of national currency because of falling of prices of oil. The decision of Central Bank is considered as attempt of Nigerian authorities to prevent recession.
Earlier it was reported that government in Zimbabwe want to let out their own dollars. According to the Central Bank of Zimbabwe, so-called Zimbabwean bonds (Zimbabwe Bond Notes) equivalent to $2, $5, $10 and $20 will be introduced into circulation. It is expected that the African export-import bank (Afreximbank) will give support to the regulator of $200 million.
As the head of Central Bank of Zimbabwe, John Mangudya has noted, dollar equivalents is planned to be let out within the next two months – the Zimbabwe Herald newspaper writes. At this stage, the regulator develops design of notes. The same thing can be done in the case of Naira, but it is under strong doubts though.
Negative sides of black market
It means that black markets may reduce their work, but it doesn’t mean something truly negative for Nigerians. Nigeria is a country with strict currency control. Calculations in hard currency aren't allowed here, the informal exchange of money is considered a criminal offense. Businessmen of black foreign exchange market saunter before offices of banks in big cities, but you shouldn't contact them resolutely. The risk is too big: you can get a banknote above and one more below, and in the middle – a pack of cut newsprint, or you will catch sight of the police officer and then turn yourself into a prison.