Are you interested in knowing the current Dollar to Naira exchange rate today in banks, CBN and black market?
Then you need to read this.
Whether you are planning to go for a trip or you want to engage in importation or other businesses that have to do with dollars, you need to know about the Naira to dollars exchange rate trends.
Besides this, the information about the current rate of Naira to dollars exchange is a protective armor against miscalculation uncertainty.
Therefore, this article will analyze the current Naira to dollar exchange rate.
Also, you will know the difference between the CBN of Nigeria rate and the black market exchange rate.
We will also discuss the factors that determine the fluctuations in the exchange price of the Naira to the dollar in Nigeria.
What is the Exchange Rate?
The exchange rate is the officially fixed price of one country’s currency if converted to another currency.
In Nigeria, for example, the fixed price that the CBN puts on the US Dollar is the amount you can buy or sell your dollars in Nigeria.
The Sell Rate is the price at which Naira is sold against a foreign currency.
Thus, if you travel from Nigeria to America or want to import goods from Canada, you will exchange Naira for US dollars at the “Sale Rate.”
Buy Rate is the rate at which a dollar is exchanged for a Naira.
Therefore, if you return from Canada or receive dollars from abroad, you will exchange your dollar at the “purchase price” in Nigeria.
Note that a dollar’s buying and selling prices are not the same.
You can sell 1 USD for ₦700 today and also buy the same $1 at the rate of ₦800 on the same day.
The exchange rate also determines the cost and value of imported goods and services.
Most currencies are referred to in the foreign exchange market by a three-letter abbreviation, like USD for Dollar and NGN for Naira.
The first two letters show the country’s name, and the third refers to the currency’s name.
Types of Exchange Rates
The exchange rate varies, and rates are quoted in the foreign exchange market (Forex), which constantly changes according to supply and demand.
The exchange rate can be fixed or variable.
1. Fixed Exchange Rate
The fixed exchange rate is the amount the country fixes artificially, as in the case, for example, between the Nigeria Naira (NGN) and the US Dollar.
When the rate is considered “unrealistic,” it creates a black market and a more “realistic” underground price.
2. Floating Exchange Rate
It is floating (or variable) if the relative values of the currencies result from the interplay of supply and demand in the global interbank currency market (Forex).
Prices frequently change on Forex, where banks carry out 90% of transactions.
Contrarily, a country whose currency appreciates against that of the countries to which it exports goods and services will find it more challenging to sell them.
This is because they will be less competitive.
Also, every country has the official exchange rate on the country’s apex bank website.
Naira to Dollar Exchange Rate Today
The exchange rate given by the Central Bank of Nigeria is the rate at which you can buy or sell a dollar at the official dollar market.
The exchange rate of dollar to the Naira in the black market differs from the CBN exchange rate and other commercial banks in Nigeria.
At the CBN exchange rate, you can sell or purchase dollars for Naira on the official portal of the Central Bank of Nigeria.
In addition, the black market exchange rate for dollars is higher than the CBN exchange rate.
|US Dollar (USD)||Naira (NGN)|
Naira to Dollar Bank Exchange Rate
You may want to know the current Naira to dollar exchange rates of $1 from banks in Nigeria.
Here are the prices from the top banks in Nigeria on the table below:
|UBA||₦503 to $1|
|First Bank||₦500 to $1|
|Polaris||₦447 to $1|
|GTBank||₦490 to $1|
|Sterling Bank||₦480 to $1|
|Stanbic Bank||₦475 to $1|
|Access Bank||₦505 to $1|
|Fidelity Bank||₦533 to $1|
|Zenith Bank||₦480 to $1|
|Ecobank||₦480 to $1|
Kindly note that the rates above are gotten from the bank’s official website.
You may have to make thorough research before you contact any bank for currency exchange.
Meanwhile, the official Naira to the dollar exchange rate is lower than the parallel exchange rate by the black market exchanger.
Therefore, most Nigerians prefer to buy and sell their currencies in the black market.
Dollar to Naira Black Market Rate Today
The black market or parallel market is the unofficial currency exchange business in Nigeria.
The Nigerian government does not approve of the parallel currency market, citizens are advised to visit authorized banks for any currency conversions.
However, the black market operation is far better than many authorized financial institutions regarding currency exchange rates.
Also, parallel market business is another employment opportunity for the masses.
There are online and offline black market currency exchangers all over Nigeria.
Today on the black market, 1 Naira (₦) is trading around $730 for purchase and $745 for sale.
In contrast to the bank’s rate of one Naira trading between 416 to 570 for the exchange rate.
Though the exchange rate fluctuates all the time.
There is no permanent exchange rate for the buying and selling of currency in Nigeria.
|Dollar to Naira (USD to NGN)||Black Market Rate|
Why is the Current Naira Exchange Rate fluctuating?
Fluctuations in the exchange rate can be triggered by various factors depending on the country.
In Nigeria, factors that affect the exchange rate in the medium to long term include external transactions, changes in domestic and foreign products price, and changes in productivity.
The exchange rate fluctuates according to the results of external transactions, such as the export and import of goods, service transactions, and capital transactions.
When the balance of payments shows a surplus, the supply of foreign exchange increases, causing the Naira-dollar exchange rate to fall.
In addition, the exchange rate is determined by the relative purchasing power that reflects changes in domestic and foreign price levels.
For example, if the price of a bag rises from NGN 1,000 to NGN2,000, the number of bags that NGN 6,000 will buy will decrease from 6 pieces to 3.
There would be a decrease in the purchasing power of the Naira and the value of goods.
Also, when one country’s productivity rises faster than another, the value of that currency goes up.
US dollar value increases because America’s productivity rises above Nigeria’s.
In addition, when a country’s productivity increases, it can supply goods at a lower price, which leads to a decrease in domestic prices or an increase in demand for domestic goods.
The factors that affect the exchange rate vary.
Meanwhile, it is challenging to predict the exchange rate because the exchange rate is a relative value of a currency, and it is determined by different situations.
As exchange rate fluctuations are also linked to profit and loss, you must be vigilant while buying or selling your dollars.
As said earlier, the Naira fluctuates in value against other currencies daily.
So, we encourage you to keep checking back regularly for the real exchange rate before carrying out your online transactions.
Finally, the current Naira to dollar exchange rate should not be an obstacle to your goals.
You can get your current Naira to dollar exchange rate from banks, parallel markets (black market), or online.
Last, always look out for the best deals, and be vigilant of online and offline exchange scammers.
We hope that this guide on the current Naira to Dollar exchange rate has helped a lot.
Kindly share your thoughts with us in the comment section.