Current Dollar to Naira Exchange Rate Today – I know for sure that this might have been your utmost desire, before you luckily found this headline captivating online!!! Quiet cool though. Here, I will be sharing in detail ‘Current dollar to naira black market exchange rate today’. Feel free to read through.
The (USD) dollar to Nigerian Naira exchange rate today varies between the CBN exchange rate and the parallel market (black market) exchange rate. Going by the CBN exchange rate is pegged at, 1 USD = N314.75. But coming to parallel market (Black market), it’s a different story entirely as stated below.
1 Dollar(USD) to Naira(N) Exchange Rate Today In Black Market
As prescribed above, the dollar to naira exchange rate in the black market is not pegged as CBN rate, as such, it fluctuates daily. For this regard, this page is updated regularly with the latest exchange rate for Dollar to Naira in Black Market; we advise you to Bookmark this page.
Key Factors that Affect Foreign Exchange Rates
INFLATION RATES: Changes in market inflation cause changes in currency exchange rates. A country with a lower inflation rate than another’s will see an appreciation in the value of its currency. The prices of goods and services increase at a slower rate where the inflation is low. A country with a consistently lower inflation rate exhibits a rising currency value while a country with higher inflation typically sees depreciation in its currency and is usually accompanied by higher interest rates
INTEREST RATES: Changes in interest rate affect currency value and dollar exchange rate. Forex rates, interest rates, and inflation are all correlated. Increases in interest rates cause a country’s currency to appreciate because higher interest rates provide higher rates to lenders, thereby attracting more foreign capital, which causes a rise in exchange rates
COUNTRY’S CURRENT ACCOUNT / BALANCE OF PAYMENTS: A country’s current account reflects balance of trade and earnings on foreign investment. It consists of total number of transactions including its exports, imports, debt, etc. A deficit in current account due to spending more of its currency on importing products than it is earning through sale of exports causes depreciation. Balance of payments fluctuates exchange rate of its domestic currency.
GOVERNMENT DEBT: Government debt is public debt or national debt owned by the central government. A country with government debt is less likely to acquire foreign capital, leading to inflation. Foreign investors will sell their bonds in the open market if the market predicts government debt within a certain country. As a result, a decrease in the value of its exchange rate will follow.
TERMS OF TRADE: Related to current accounts and balance of payments, the terms of trade is the ratio of export prices to import prices. A country’s terms of trade improves if its exports prices rise at a greater rate than its imports prices. This results in higher revenue, which causes a higher demand for the country’s currency and an increase in its currency’s value. This results in an appreciation of exchange rate.
POLITICAL STABILITY & PERFORMANCE: A country’s political state and economic performance can affect its currency strength. A country with less risk for political turmoil is more attractive to foreign investors, as a result, drawing investment away from other countries with more political and economic stability. Increase in foreign capital, in turn, leads to an appreciation in the value of its domestic currency. A country with sound financial and trade policy does not give any room for uncertainty in value of its currency. But, a country prone to political confusions may see depreciation in exchange rates.
RECESSION: When a country experiences a recession, its interest rates are likely to fall, decreasing its chances to acquire foreign capital. As a result, its currency weakens in comparison to that of other countries, therefore lowering the exchange rate.
SPECULATION: If a country’s currency value is expected to rise, investors will demand more of that currency in order to make a profit in the near future. As a result, the value of the currency will rise due to the increase in demand. With this increase in currency value comes a rise in the exchange rate as well.read more