How does the black market affect the exchange rate between Canadian dollar and Naira?

1 answers

• Jasmin-SophieDec 13, 2023 · 2 years ago
  The black market has a direct impact on the exchange rate between the Canadian dollar and the Naira. In the black market, the exchange rate is determined by the forces of supply and demand. If there is a high demand for the Canadian dollar and limited supply, the exchange rate in the black market will be higher compared to the official exchange rate. This can lead to a depreciation of the Naira against the Canadian dollar. Conversely, if there is a low demand for the Canadian dollar and abundant supply, the exchange rate in the black market will be lower, resulting in an appreciation of the Naira. It's worth noting that the black market exchange rate may not accurately reflect the true value of the currencies and can be subject to manipulation and speculation.
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