Business
Naira Falls Against Dollar On Monday, May 12, 2025
By Benjamin Abioye
On Monday, May 12, 2025, the naira is exchanging for ₦1,625 to 1 US dollar at the parallel market (black market) in Nigeria.
This reflects the current rate at which individuals are trading dollars for naira outside of official financial institutions.
This means that for every one dollar, you can get the equivalent in naira of ₦1,625 on May 12, 2025, showing a slight depreciation compared to the previous day, indicating added pressure on the naira against the dollar.
Monday, May 12, 2025, records a minor downward movement in the exchange rate, suggesting a fresh dip in the local currency’s strength among those trading in foreign exchange.
The black market rate represents the value at which individuals can trade their dollars for naira outside official exchange channels, where the currency’s value is largely driven by supply and demand dynamics rather than government regulation.
Note that the Black Market Exchange rate is typically higher than the official exchange rate because it is not regulated by the government and reflects a more immediate, fluctuating market response.
Today’s exchange rate has slightly worsened compared to yesterday, Sunday, May 11, when the naira exchanged at ₦1,618 per dollar. (This means the naira lost some value in the past 24 hours, possibly due to increased demand for dollars or reduced forex supply.)
The value of a country’s currency is determined by aggregate supply and demand, influenced by factors such as national interest rates, inflation, capital flow, and the overall money supply.
These forces, both internal and external, affect the strength of a nation’s currency and contribute to exchange rate fluctuations. The most common method to assess a currency’s value is through exchange rates. The two main exchange rate systems are the fixed rate and the floating rate systems, with the parallel market rate offering a real-time reflection of currency trends.
Investors and market participants closely monitor parallel market rates for a more immediate and practical reflection of currency trends, often making it a reliable indicator of short-term shifts in economic conditions.
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