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Naira Faces Slight Drop in Value Vs Dollar – June 4, 2025

By Benjamin Abioye

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Naira to Dollar July 1

On Wednesday, June 4, 2025, the naira was exchanging for ₦1,591 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 could get the equivalent in naira of ₦1,591 on June 4, 2025, showing a slight depreciation compared to Tuesday, June 3. This indicates a mild weakening in the naira’s value against the dollar.

Wednesday, June 4, 2025, records a small upward movement in the exchange rate, revealing a modest loss in the local currency’s strength among those actively trading in the foreign exchange market.

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 Tuesday, June 3, when the naira exchanged at ₦1,585 per dollar. (This indicates that the naira has lost a bit of value in the past 24 hours, possibly due to rising demand for dollars or limited foreign currency inflow.)

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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