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Naira Weakens Again Versus Dollar – June 18 Update
By Benjamin Abioye
On Wednesday, June 18, 2025, the naira was exchanging for ₦1,589 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 ₦1,589 on June 18, 2025, showing a slight depreciation compared to Tuesday, June 17. This indicates a gradual weakening in the naira’s value against the dollar.
Wednesday, June 18, 2025, records a continued shift in the exchange rate, revealing another minor drop in the local currency’s strength among participants in the informal 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 influenced by supply and demand dynamics rather than central bank regulations.
Note that the Black Market Exchange rate is typically higher than the official exchange rate because it is not controlled by the government and responds more directly to market pressures and investor sentiment.
Today’s exchange rate has slightly worsened compared to Tuesday, June 17, when the naira exchanged at ₦1,576 per dollar. (This suggests the naira has lost a bit more value in the last 24 hours, potentially due to sustained demand for the dollar or tighter dollar availability in the informal sector.)
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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