People visit Bureau De Change (BDC) at the black market for a dollar, pound sterling and euro to naira exchange when they can’t access at the official bank rates.
This is mainly because of scarcity, restrictions, delay, or regulations.
The black market exchange trades foreign currencies at rates different from the official exchange rate set by the CBN. The difference is what we call the parallel market premium.
To help you understand the currency table, selling means the price the BDC operators will sell to you and buying means the price they will buy from you.
Black Market Dollar, Pound and Euro to Naira Exchange Rate
As of today, Monday 29th April 2024, these are the black market exchange rates for dollar, pound sterling, and euro to naira.
| Currency | Buying | Selling |
|---|---|---|
| Dollar | ₦1,165 | ₦1,200 |
| Pounds | ₦1,453 | ₦1,496 |
| Euro | ₦1,247 | ₦1,284 |
If you need the official bank exchange rate, you can check here on the CBN website.
| Month & Year | Avg Price Per $ |
|---|---|
| March 2024 | ₦1,421 |
| Febraury 2024 | ₦1,617 |
| Janaury 2024 | ₦1,192 |
| December 2023 | ₦881 |
| November 2023 | ₦790 |
| October 2023 | ₦785 |
| September 2023 | ₦768 |
| August 2023 | ₦773 |
| July 2023 | ₦759 |
| June 2023 | ₦759 |
| May 2023 | ₦460 |
| April 2023 | ₦460 |
History of these Currencies
Naira:
The colonial ordinance of 1880 in Nigeria introduced the Shillings and Pence as the official currency in British West Africa.
The West African Currency Board (WACB) created the first banknotes and coins in Nigeria, Ghana, Sierra Leone, and the Gambia from 1912 to 1959.
After independence, we changed the currency in 1962 to show we are a republic, and then again in 1968 after the civil war.
In 1973, they changed the name of Nigerian money to the one naira. Then, in 1977, they made a new twenty naira banknote.
The banknotes were also the first to have the picture of the late General Murtala Ramat Muhammed, who became a national hero in 1978.
In 1984, they changed the colors of all banknotes to stop currency trafficking.
In 2009, they changed the ₦50, ₦10, and ₦5 banknotes to polymer.
The CBN released a ₦50 special plastic note in 2010 and a N100 special note in 2014.
Dollar:
The US Mint, founded in 1792, made the first dollar coins.
The coins were like the Spanish dollar made in Peru and Mexico.
The Spanish dollar and Mexican peso were no longer accepted as legal currency in the US after the Coinage Act of 1857.
They introduced the first United States dollar notes as demand notes in order to finance the Civil War of 1861.
The United States Notes, also known as legal tender, came out in 1862, and they started printing them in a standardized way in 1869.
At first, it was traded like a coin worth its weight in gold or silver. Then, it became a paper note that you could exchange for gold.
Today, the Dollar to Naira trade with the black market exchange rate.
Pounds:
The pound banknotes have been around for over 300 years but made its debut in 1489 under Henry VII.
It got its name from the Latin word “libra,” meaning balance and weight.
Until 1660, when they started using machines, the first notes were written by hand.
The pound sterling went into circulation in 1694 and used to have pennies and shillings until 1971, when they switched to decimals.
In the same 1971, the UK allowed the British pound to float freely along with other currencies. This is to let the market decide the currency’s value.
In 2002, when most EU countries started using the euro, the UK decided not to join.
Today, the Pound Sterling to Naira trade with the black market exchange rate.
Euro:
The name “the euro” was decided on in 1995 at a meeting in Madrid. In January 2002, they designed 7 banknotes and 8 coins for the first launch.
The designs of the notes are the same in all euro area countries. One side of coins is the same everywhere, while the other side represents each country.
Over the years, the European Central Bank and national central banks made new banknotes with better security features and a new design that has a picture of Europa.
The € symbol is based on the Greek letter epsilon (Є) and represents stability with two parallel lines.
The euro’s ISO code is EUR. You use this when talking about euros without using the symbol.
Today, both Euro and Naira trade at the black market exchange rate.
Meaning of Bureau De Change
The black market is a market where people either buy from or sell dollar to the Bureau De Change (BDC) Operators.
To help you understand better…
When you buy a dollar, you get a dollar by paying with naira to the Bureau De Change. But when you sell a dollar, you exchange your dollar for naira at the black market rate.
What is the meaning of Bureau De Change?
According to the Central Bank of Nigeria,
A Bureau De Change (BDC) is a business that competes with similar businesses by buying foreign currency and selling it at a higher exchange rate to make money.
This is like you trading Forex, you buy and sell foreign currency online. The difference is while you trade digital; they trade in the physical.
The CBN continues that Bureau De Change (BDC) can set their rates, as long as there’s no more than a 2% difference between buying and selling.
This means if, for example, BDC buys a dollar at ₦1000, they should not sell above ₦1020 per dollar.
FAQs on Dollar USD to Naira Exchange Rate
What is the meaning of Bureau De Change?
A Bureau De Change (BDC) is a business that competes with similar businesses by buying foreign currency and selling it at a higher exchange rate to make money.