What is the Current Exchange Rate of Dollar to Naira Today?

How Much Is Dollar To Naira Exchange Rate Today? Updated Daily

If you’re Nigeria, you should know that the Naira to dollar exchange rate has been pegged at the official rate of N305.25, while the black market dollar exchange rate today is N500.00 for selling and if you’re buying you will pay N497.00 per a dollar.

Looking at the situation of foreign exchange rates in Nigeria, you could say the issue is not encouraging and you might be wondering what factors contribute to exchange rate in a country:

N 500 >>>To Sell $1

N 497 >>> To Buy $1

How Do Exchange Rates Work?

You can watch the little video below to know how exchange rate works – Not only in Nigeria, but in every country.

So, what affects the exchange rate dollar to Naira?

The demand for a country’s currency is determined by what is happening in that country. First, the interest rate paid by the country’s central bank is a big factor. The bigger monthly interest makes that currency more significant. Investors will exchange their currency for that higher-paying one. They save it in this country’s bank to receive the higher interest rates.

Secondly, the amount of money supply that’s created by the country’s central bank. If the government prints too much currency, then there’s too many dollars, euros or yen chasing too little goods. Currency holders will bid up the prices of goods and services. That induces inflation. If lots of money is printed, as usually happens to settle war debts, this causes hyperinflation.

Some investors that have cash will invest overseas, where there isn’t inflation. But they’ll see that there isn’t as much demand for their currency since there’s so much of it. That’s why inflation will push the value of a currency down.

This is exactly what’s happening to Nigerian economy today, Nigeria has no power outside the Nigeria territory and it can only be used in Nigeria – so causing the high current exchange rate of dollar to Naira.

Thirdly, a country’s economic growth and financial stability impact its exchange rates. If your country has a strong, growing economy, then investors tend to buy its products or services, and need more of its currency to take action.

If the financial stability looks bad, they shall be less willing to invest in that country. They want to be certain they’re going to get money back in case they hold government bonds in that currency.

You’d think that something with so much influence on international trade could be more regulated when you talk about foreign exchange rates; it isn’t the same for many currencies.

Dollar to Naira Exchange Rate History

Naira to Dollar Exchange Rate in 1999

Naira to Dollar Exchange Rate in 2009

US Dollar (USD) to Nigerian Naira (NGN) on (31/12/2009)

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