Dollar to Naira Exchange Rate Today Black Market and Official February 2017.
Bookmark this page for your daily update of how much is exchange rate of dollar to naira both in black market and CBN official rate for 2017. Naira to dollar exchange rate black market is the same as parallel market exchange rate of 1 Nigeria NGN to US $ and vice versa.
Official rate and cbn rate can be used interchangeably in this context, they are the same thing. The same applies to parallel market and black market.
I won’t like to bore you with irrelevant things, so let’s go straight to the point. Which is the current official/CBN naira to dollar exchange rate today, exchange rate of dollar to naira black market, factors influencing the fluctuation as well as possible solution and how it affects numerous Nigerian.
Problem Statement and Objective of this Article.
Due to continuous depreciation of Nigeria Naira over the past months, numerous Nigerians involved in the importation, exportation, stock and forex trading have to keep themselves updated on the latest/current foreign exchange rate not only between the Dollar and the Naira, but also Euro to Naira exchange rate today black market, Pounds to Naira exchange rate today and each Nigerian bank exchange rates.
Knowing the current/latest exchange rate gives them hedge on if & how they should proceed with a transaction that involves trading in foreign currencies. The objective of this article is to provide you with current dollar to naira exchange rate today in black market as well as cbn exchange rate dollar to naira from December 2016 to February 2017.
Before i proceed, one other thing most Nigerians seems to frequently asked for is what is Foreign exchange? It is simply the means of payment for international transaction.
Dollar to Naira Exchange Rate Today Black Market.
Buying = N510.
Selling = N515.
CBN/Official Exchange Rate of Dollar to Naira Today.
Buying = N304.25.
Selling = N305.25.
Dollar to Naira Bank Rate Today.
Buying = N315 Naira.
Selling = N320 above. This varies with banks.
Looking back at the dollar naira exchange rate history, it shows the NGN has not been doing great. The rate was 1 $ = N21.89 in 1999, today (2016/2017) the rate is 1$ = 315 Naira. How does that happen and does it affect Nigerians? Continue reading.
Bad Effects of Free Fall or Depreciating Naira on Nigerians.
In my opinion, Nigeria’s current economic problem arises as a result of having only one major exportable product, which is petroleum. Our economy is affected every time oil price falls in the world market.
If we can diversify and develop our Agricultural sector again, IT industries and Chemical industries to a major sector managed by the Federal Government, there is high probability inflation will reduce and dollar naira exchange rate will be more favorable for an average Nigerian. Below are the effects of naira depreciating on Nigerians.
The reduction in the value of Naira is an unfavorable circumstance for the importers. Since what used to cost them N100,000 to import into the country now cost N200,000 naira. So, they have to increase their selling price and when selling price increases, people might decline which in turn hurts their sales. If they continue like this, their business might collapse on the long run. This is one of the con of the current dollar to naira exchange rate today.
A perfect example of the current dollar to naira exchange rate against Nigerians is the on going payment for Hajj. Some Muslim brothers and sisters are finding it difficult to complete the final stage of Pillars of Islam because of unfavorable dollar to naira exchange rate in various Nigerian banks. If not quickly mitigated might affect the Jerusalem Pilgrims and citizens going for Christmas or New year’s vacation at the end of the year.
3.) School Fees Payment.
Another bad effect of the current weakening of Nigerian naira is the increment in the expenses of Nigerian parents with kids abroad. They have to change lot of Naira to few Dollars to carter for the needs of their wards outside the country.
4.) Other effects of a rising dollar and falling naira is on Nigerian stock markets, SMEs collapsing on the long run etc.
Factors Influencing Dollar to Naira Rate Today Black Market and Official.
1. ) Political Instability.
Nigeria’s current political instability caused by crisis among political parties, Terrorism in the Northern part of the country, extremely low daily power supply etc are driving away foreign investors. Investors from foreign countries look for stable countries with strong economic performance to invest their capital. If foreign investors can settle in Nigeria, they will have to trade in our local currencies which means they will have to buy Naira with their Dollar and in turn increases the value of Naira.
2.) Importation and Exportation.
As i said earlier in this article, Petroleum takes more than 3/4 of our exporting products, leaving just about 20% for agricultural products, chemicals etc. On the other hand, Nigeria imports about anything possible to the country which increases the demand for dollar and then depreciation of Naira. Higher importation and lower exportation is not good for any economy, Nigeria included. Nigeria as a country need to produce more exportable products and reduce the percentage of importation.
3.) Free Fall of Oil Price.
Since Nigeria depends solely on the revenue generated from oil exportation, our economy is affected anytime there is fall in oil price in the world market. This alone shapes Nigerian exchange rate. Naira Dollar exchange rate today is highly affected by fluctuating price of oil in the world market.
4.) Other USD ($) to NGN (N) exchange rate influencing factors are Government policy, Nigerians obsession with foreign products, Inflation, Public debt and Current-Account deficits.
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