In Nigeria’s informal currency trading circles, commonly known as the black market, the exchange rate for the Canadian Dollar to Naira has surged to N1,153.469 as of March 10, 2024.
These transactions, facilitated by informal traders called Abokis, have witnessed a notable increase, signaling the persistent volatility in the foreign exchange market.
Operating outside the official banking system, the parallel market reflects the real-time dynamics of supply and demand for foreign currencies in Nigeria.
While it serves as an alternative avenue for acquiring foreign currencies, the black market is associated with risks such as scams, emphasizing the need for caution among participants.
Presently, exchanging 100 Canadian Dollars (CAD) in the black market amounts to N115,346.90, while CAD 1000 exchanges for N1,153,469.00, indicating significant deviations from official exchange rates.
This disparity underscores the challenges encountered by individuals and businesses seeking foreign currency for international transactions, further complicating Nigeria’s economic landscape.
The reliance on the black market for currency exchange underscores broader issues in Nigeria’s foreign exchange market, including stringent currency controls and limited access to foreign currencies through official channels.
Despite efforts by the Nigerian government and the Central Bank of Nigeria (CBN) to stabilize the Naira and streamline access to foreign currencies, the demand-supply gap fueling the parallel market persists.
As the exchange rate for the Canadian Dollar continues to rise in the parallel market, calls for comprehensive reforms in Nigeria’s foreign exchange policies gain momentum.
