Abokifx exchange rate in Nigeria today has been the authority when it comes to Black Market rates in Nigeria. In this post we aggregate prices as obtainable in the black market through internet sources of a similar nature to Abokifx. This information has been useful for price comparison for people researching the price movements of the naira against top international currencies.
The naira has been on the free fall against a basket of currencies, resulting in very high exchange rates on the local market. Great British Pound has traded for an average price of N765 to a single pound, while the US dollar has traded for an average price of N682.
The following are the abokifx exchange rates in Nigeria black market; these figures are considered the true reflection of the Nigerian currency.
Abokifx Exchange Rate In Nigeria Today Black Market
| Currency and Symbol | Date | Exchange Rate (NGN) |
| United States Dollars (USD $) | 01-September 2022 | N696 |
| Great British Pounds (GBP £) | 01-September 2022 | N840 |
| Canadian Dollar (CAD $) | 01-September 2022 | N480 |
| Australian Dollar (AUD $) | 01-September 2022 | N455 |
| Euro (€) | 01-September 2022 | N675 |
| Chinese Yuan Remnibi (RMB) | 01-September 2022 | N85 |
| West African (CFA) | 01-September 2022 | N940 |
| South African Rand (ZAR) | 01-September 2022 | N30 |
| United Arab Emirates (AED) | 01-September 2022 | N160 |
Analysis Of The Exchange Rates Above
The exchange rates above vary widely from the official rates published by the government through the Central Bank of Nigeria CBN.
For example; on the black market, the USD exchanges for N696, while on the official channel it is N424. The Great British Pound trades for N840, as against the official rate of N494, and the Euro sells for N675, as against the official rate of N425.
This leads to a mind boggling question; “what exactly is the black market?”
Information About The Black Market
The “black market” or “parallel market” is the currency exchange that exists outside the banking system. This market is not controlled by the government, or by any other organization or person. The black market functions basically along the lines of demand and supply; that means prices can go higher or lower in one particular location, as against what is available in the rest of the city.
For example; a dealer can find that he has received a lot of patronage in one single day. He could raise his prices by a single digit, and still get a lot of patronage.
Tempting his luck, he could further raise the rates, and if he continues to receive high amounts of patronage he could continue to raise the rates indefinitely, even driving up the rates in other parts of the city, and the country.
Even on a single day, black market rates can vary widely because there are no price controls, and no limitations on the volume of transactions to be done by single individuals.
Can You Have Two Exchange Rates?
At great costs to the economy, it is possible to have two exchange rates. The only implications are that it becomes impossible to maintain the value of your currency because people will quote black market prices instead of the official rate.
Also, there is a risk of the black market becoming more important that the official exchange rates because people will gravitate towards the market that offers them more value for their foreign currencies.
Perhaps most importantly, the international community may then lose trust and respect in the country’s financial system.
What Are Some Of The Reasons Why The Exchange Rates Are So High?
The exchange rates are so high for a number of social and political reasons. Remember that the prices at which your currency exchanges is a reflection of the state of your economy. Therefore, these are some of the issues impacting the economy, and reflecting on the exchange rates in Nigeria.
Looting Public Funds
Looting of Public Funds is one of the oldest and far reaching ills that have affected Nigeria over the years. Not just does this cripple the nation in terms of growth and development in terms of infrastructure, but it also results in an oversupply of the naira both in Nigeria and overseas.
Sometimes, looters agree to exchange naira to dollars at outrageous prices so that they can stash the stolen money in foreign bank accounts.
This results in an artificial scarcity of foreign currencies; making them rise in value as against the naira.
Insecurity
Insecurity has crippled several key sectors of the economy; for example, the agricultural sector has suffered because many farmers have had to abandon their farms for fear of being killed by insurgents. That has led to scarcity of food items, as well as a rise in the prices where they are available.
With inflation so high, the result is that the Nigerian naira is under immense selling pressure, not just on the black market, but also on the official exchange as well.
Trade and industry have also suffered from this scourge of insecurity because goods and services cannot be freely transported from one location to another.
Lack Of Demand For The Naira
Lack of demand for the Naira has meant that the currency has dropped dramatically because without demand, price will naturally go down. Due to some of the aforementioned reasons, the Naira has not been in high demand. Furthermore, the oil industry has also suffered because of oil theft, and also because of the declining demand for oil as a result of the rise of other sources of energy.
The country has also not done enough to establish other sectors of the economy so that they too can generate revenue; bringing more demand for the naira, and creating jobs in the process.
The Existence Of A Black Market
The existence of a black market has impacted the economy negatively; people will naturally go to the black market when they believe they will get a higher value for their foreign currency. Therefore, with the presence of the black market, the exchange rate of the naira cannot be controlled.
The existence of a black market is therefore a core reason why the naira has been falling almost consistently for a number of years. The question now is; “what is the benefit of the Black Market?”
Why Is There A Black Market?
The Black Market is an essential part of the financial structure in Nigeria. This is because the government has decided to deny access to foreign currency to non strategic industries. Therefore, people who are into buying and selling of goods and services with international trade partners would suffer without the black market because they would not be able to source the foreign currencies with which to do business.
Some who are studying abroad would also have suffered without the black market because they may not have been able to source for the foreign currency with which to pay for their studies, and other related expenses.
Therefore, the black market plays a very important role because it meets an important demand; which is foreign currency for the use of Nigerians who need it. As long as that demand is there, someone will always fill the void, and he will always make money from it.
Related:
- Moneygram Dollar To Naira Exchange Rate
- DOLLAR TO NAIRA EXCHANGE RATE TODAY BLACK MARKET
- Western Union Dollar to Naira Exchange Rate Today
- EURO TO NAIRA EXCHANGE RATE IN BLACK MARKET TODAY
- Pounds To Naira Exchange Rate In Black Market Today
Closing
Abokifx exchange rate in Nigeria today black market remains a popular search term. However, the website itself has come under heavy fire from the Nigerian authorities. The website has been accused of fixing the exchange rate, leading to the suspension of some of its services.
Whether that accusation is true remains very doubtful; economics has maintained that in a free market, the forces of demand and supply will always determine price. As it has been demonstrated previously, websites (including this one) only report the prices obtainable in the market on the day. They have no hand in determining the prices.