How much was dollar to naira in 2020 black market? This question has been on the minds of many Nigerians as the black market exchange rate often differs significantly from the official rate set by the Central Bank of Nigeria (CBN). In 2020, the black market exchange rate for the dollar to naira experienced several fluctuations, influenced by various economic factors and government policies.
The black market exchange rate for the dollar to naira in 2020 started the year at approximately 450 to 500 naira per dollar. However, due to the ongoing economic challenges faced by Nigeria, such as low oil prices and the COVID-19 pandemic, the rate began to soar. By the end of the first quarter, the black market exchange rate had reached around 600 to 650 naira per dollar.
The CBN, in an attempt to stabilize the economy and control inflation, introduced various measures, including the sale of foreign exchange at the official rate to authorized dealers. However, these efforts were not enough to curb the black market exchange rate, which continued to rise. By the second quarter of 2020, the black market exchange rate had reached an alarming 800 to 900 naira per dollar.
Several factors contributed to the rising black market exchange rate. Firstly, the demand for foreign currency increased as Nigerians sought to purchase imported goods, pay school fees, and remit money abroad. Secondly, the CBN’s restrictions on the sale of foreign exchange to individuals and businesses further fueled the demand for dollars in the black market. Lastly, the weak naira and high inflation rates also played a significant role in pushing the black market exchange rate higher.
In response to the soaring black market exchange rate, the Nigerian government and the CBN implemented several measures to address the situation. These included the introduction of the TraderMoni and MarketMoni schemes to provide low-interest loans to small-scale traders and market vendors, respectively. Additionally, the CBN increased the supply of foreign exchange to the official market, which helped to stabilize the official exchange rate.
Despite these efforts, the black market exchange rate for the dollar to naira in 2020 remained volatile. By the end of the year, the rate had stabilized at around 700 to 800 naira per dollar. However, it is important to note that the black market exchange rate can vary significantly depending on the location and the availability of foreign currency.
In conclusion, the black market exchange rate for the dollar to naira in 2020 experienced several fluctuations, reaching a high of 800 to 900 naira per dollar at certain points during the year. The rising rate was influenced by various economic factors, including the demand for foreign currency, government policies, and the weak naira. While the CBN and the Nigerian government implemented measures to stabilize the exchange rate, the black market continued to play a significant role in the foreign exchange market.
