How much is Dollar to Naira Exchange rate today in black market? This is the question most Nigerians do ask and want to know. Nigerian as at today operate a multiple exchange rate system where we have the official exchange Rate, interbank exchange rate and the black exchange rate.
In this article our main focus shall be on the black market exchange rate where we are going to be looking at the daily exchange rate at the black market.
Dollar To Naira Exchange Rate Today Black Market {Updated Daily}
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CBN Dollar To Naira Exchange Rate Today:
To $1
Exchange Rate Dollar To Naira Black Market
| Dollars to Naira (USD to NGN) | Exchange Rate Today |
| Buying Rate | |
| Selling Rate |
Facts about the United state dollar you should know
The United States dollar is referred to as USD and has been accepted globally and recognized as a legal tender in many countries such as Micronesia, Zimbabwe, Palau, El Salvador, East Timor, Marshall Islands, and the United States.
Among the three top rated currency in the world today, Euro, pound and Dollar; Dollar remains the currency we all make use of frequently.
- The United state dollars was first introduced in 1690.
- The United States dollar weigh 1 gram
- The portrait that is on 1$ is that of George Washington’s.
- Do you know that there is $100,000 note? Yes it does exist but can’t be accessed by the public.
- As at today the total amount of US dollar in circulation is over $1.54 trillion of U.S.
- It is estimated that over two-thirds of all $100 bills which is very huge are held outside the United States of America.
- The United States minting company known as Bureau of Engraving and Printing produces over 38 million notes often.
- $1, $5, $10 which are the smallest denominations are frequently use than others.
- The United States coin can last up to 25 years.
- Do you know that Americans throw away $62 million coins each year?
- The only woman that is on the US dollar is Martha Washington.
See reasons why there is fluctuations/ High Dollar to Naira Exchange rate today in black market
There are certain reasons why there might be increase in the high exchange rate we are all experiencing right now. So we are going to take our time to list them out here.
Import demand is high
Nigeria is a Mono economy hence we rely heavily on imported items like cloths, shoes, bags, makeup and attachments for women, industrial equipments, electronics, cars and even fuel.
All these have terrible effects on the Nigerian economy and one of this effects remains massive pressure on Naira and available Dollars needed to offset import. In simple economic understanding when demand is more than supply then prices is bound to shoot up.
Drastic fall in oil prices
ever since 2014 oil prices has continue to fall although there has been minor gains but this gains are not much as compared to the 2013 to middle of 2014 oil boom when oil sold for 140$ per barrel.
Oil remains a major foreign exchange earner for the government, they use the proceed to finance most recurrent and capital expenditure under a given fiscal year.
When there is fluctuations in the prices of oil then the Nigerian economy as a whole will suffer, not having the needed fund to carry out its responsibilities.
Investors confidence
if investors confidence is high there will be no capital flight. People will be willing to invest in the economy because they are rest assured that their investments is secured.
More foreign Direct investments coming into the country helps keep the exchange rate lower, makes the economy to be healthy and the naira benefits by being valued.
Government policies
Government makes policies for the economy as a whole and this policy can be divided into:
- fiscal policy and
- monetary policy.
This is the major tool government uses to either control the money supply or decrease it.
- Monetary policy : The monetary policy remains of the most used policy because it has a direct impact on the whole of the economy. Take for instance if the federal government of Nigeria wants to boost the economy through increase in aggregate demand the first thing it does is to allow the central bank of Nigeria to first decrease the interest rate.
- Fiscal policy : here the government will have to cut down taxes which will attract Direct Foreign Investment, which means that enough dollars are coming into the country because the environment is somehow friendly to them.