Naira to Dollar Exchange Rate: What's The Latest?
Do you want to know the latest exchange rate between the Naira and Dollar? Then, this is your lucky day! Read on as we provide you with all the information that you need about Nigeria's currency.
Section 1: The Naira's History
When Nigeria got its independence in 1960, the Naira was pegged at 3 1/2 pounds Sterling. And as with most currencies, it lost value through the years and in 1993, it was decided that it needed to be unified with the West African CFA Franc. Today, the Naira is the official currency of the Federal Republic of Nigeria and is pegged at 365 Naira to the U.S. Dollar.
It's important to remember that the Naira is not actually pegged to any other currency. It is an independent currency and can, therefore, appreciate against other currencies. This also means that it can be devalued against other currencies.
Because of this, it is advised that when trading the Naira or other Nigerian currency, that you should be cautious and know that it might depreciate against your trading currency.
The Current Exchange Rate
When you receive N100 from your friend, shopkeeper or vendor, what amount do you consider to be yours? Depending on how close to the official rate you are and your actual exchange rate, the answer is anywhere from N45 to N70.
Nigeria operates a multiple exchange rate system where it uses three different rates to determine exchange between foreign currencies and Nigerian Naira (Naira) currency: the official Central Bank of Nigeria (CBN) rate, the Bureau of Public Enterprises (BPE) rate, and the official CBN rate for official transactions. For example, the BPE rate is a flat rate of about N305 and that is in contrast to the N305 official rate which is divided between 3 major exchange rates.
What Affects the Naira's Value?
The value of the naira largely depends on the price of crude oil, the country's main export, and the monetary policies of the Central Bank of Nigeria (CBN). However, there is also a strong influence from external factors including global trends, geo-political events and the impact of the Nigerian political economy on the domestic economy.
Currently, the total value of the Nigerian currency is around $51bn with a $1 = NGN510.5. Over the past few years, the value of the Nigerian currency has largely fluctuated. Nigeria imports a lot of non-oil goods including a huge amount of basic goods and materials that are essential to industry, including drugs.
The Nigerian Naira has lost value against the Dollar since the beginning of the year. So, is it fair to say that you should exchange your Naira at a particular rate? What are the factors that you need to consider when choosing the right exchange rate?